Health Quote by Michael E. Porter
““Pay-for-performance will only raise costs if providers get higher pay for process compliance but do not have to compete on results.””
About This Quote
Source Article: Harvard Business Review, “Pay‑for‑Performance and Cost Management”, 2019
Linking payment to process compliance without outcome competition can increase expenses.
In simple terms: Paying for checklists, not results, raises costs.
Tie compensation to measurable outcomes.
Themes
Mood
Type
When to use this quote
- hospital administration
- policy design
- provider contracts
- budget planning
Key Concepts
Questions to Reflect On
- What metrics best capture true performance?
- How can we ensure fairness in outcome‑based pay?
If outcomes are hard to measure, the model may fail.