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Health Care Quality Measures - Quality Incentive Payment System

Health Care Quality Measures - Quality Incentive Payment System

The 2008 Health Reform Law calls for the establishment of a statewide system of quality-based incentive payments to health care providers. These payments are sometimes also called “pay-for-performance” incentives. This system will be used by public and private health care purchasers. This more coordinated approach to measuring, reporting and paying for health care quality will create stronger incentives for health care providers to improve quality and will put more useful and understandable information in the hands of Minnesota health care consumers.

Measures from the Statewide Quality Reporting and Measurement System have been used to develop the system of quality incentive payments to health care providers, based upon achieving target levels of performance or based on improvement over time.

The incentive payment system was implemented in 2010 for participants in the state employee health plan and enrollees in state public insurance programs.

Quality Incentive Payment System Report - Annual Proposed Update 2016

The Commissioner of Health annually reviews, evaluates, and updates the Minnesota Quality Incentive Payment System (QIPS) framework. The Minnesota Department of Health (MDH) is proposing its sixth update to the framework since the initial framework was published in January 2010. This report describes both the methodology and the quality measures included in QIPS.

Minnesota Statewide Quality Reporting and Measurement System: Quality Incentive Payment System – Proposed Framework, June 2016 (PDF)

MDH seeks stakeholder feedback on the following questions:

  1. Quality measures currently included in QIPS have largely a clinical focus. National discussions on measurement priorities suggest broader population health measures are as well important in driving improvements in quality of care. Should QIPS consider metrics that more explicitly reflect population health concepts (e.g., well-being, overweight and obesity, addictive behavior, and others)? How should QIPS balance a focus on population health with evolving the selection of clinical measures

  2. Currently QIPS users (the State Employee Group Insurance and the Department of Human Services) offer greater award for absolute performance than for incremental change. Should QIPS incentives be re-balanced to shift rewards towards improvement? What factors favor the status quo or changes to it?

  3. Currently, clinic and hospital quality measures are included in QIPS; however, QIPS users do not tie performance rewards to hospitals and have no immediate plans to do so. Additionally, the federal Centers for Medicare & Medicaid Services administer a number of hospital value-based purchasing and pay-for-performance programs in which Minnesota hospitals participate. Should MDH continue to include hospital measures in the QIPS framework?

  4. Alignment in measurement and performance incentive helps reduce administrative burden and has the potential to strengthen the “improvement signal.” How well does QIPS align with other existing pay-for-performance approaches in Minnesota's market? Does there continue to be value in operating a separate, statewide incentive payment system in which only certain payers (i.e., MMB and DHS) participate with a narrow volume of incentives?

Interested persons or groups must submit recommendations, comments, and questions by June 17 to: Denise McCabe, Minnesota Department of Health, P.O. Box 64882, St. Paul, MN 55164-0882; phone (651) 201-5530; fax (651) 201-201-5179; or

Past Reports

Updated Friday, June 03, 2016 at 01:04PM