2009 PAY FOR PERFORMANCE PROGRAM-2026

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The first P4P program to emerge in 2001 was the California Pay for Performance Program, which included financial incentives based on utilization management. CMS started using P4P in 2005 with its Medicare Physician Group Practice Demonstration, a value-based purchasing pilot.
Pay for performance (P4P) is a payment structure that builds on an employees base pay when they meet or exceed measurable performance metrics. It is often seen as a fairer and more adaptive way to reward employees who put in great effort and get better results, compared to the traditional salary system.
Pay for performance (or performance-related pay) is a variable pay model in which employees receive more compensation when they meet or exceed specific goals. These goals might be tied to revenue, activity volume, customer outcomes, efficiency metrics, or whatever managers and executives decide matters most.
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