RAND Corporation Develops P4P Model For Serving Disadvantaged Consumer Populations

A new RAND Corporation pay-for-performance (P4P) model for serving complex consumer populations calls for payers to adjust the base capitation rates paid to health care professionals to account for socioeconomically disadvantaged patients, many of whom have complex care needs. The new model features tiered post-adjustment multipliers to equalize per member per month (PMPM) payments. The formula of tiered payments is based on the average income of the provider organizations' patient panels, and the variation in their average weighted PMPM rate. The goal is to provide incentives to provider organizations that achieve high quality performance despite fewer resources . . .