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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.

The health care quality measures 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 Update 2015

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 fifth 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.

As MDH prepares for its fifth review and update of the Quality Incentive Payment System (QIPS), it seeks stakeholder feedback on the following questions:

  1. Do the quality measures included in QIPS align with purchasers’ employee health and wellness priorities? Would other measures be useful?

  2. The framework states:

    Each clinic that does not meet the absolute performance benchmark for a particular quality measure is eligible for incentive payments for improvement for three consecutive years, beginning with the first year a clinic becomes eligible for payment for improvement. After this, the clinic would be eligible for the absolute performance benchmark payment incentive. If the physician clinic or hospital achieves the absolute performance benchmark payment incentive, then it could be eligible for either award in the subsequent year.
    As such, a clinic that receives three consecutive improvement awards must meet the absolute performance benchmark to receive an award in Year 4. If it does not meet this goal in Year 4, it will not receive an award.
    In Year 5, if the clinic does not meet the absolute performance benchmark, should it be eligible for an improvement award or must it first achieve the absolute performance benchmark?

  3. Currently, clinic and hospital quality measures are included in QIPS; should QIPS include measures for other health care settings?

  4. What is the value in having a statewide incentive payment system? Are parallel efforts in the private sector and federal government sufficient to incentivize improvements in health care delivery?

Comments are due by May 1 at 4:30 p.m. Please submit comments electronically to

Minnesota Statewide Quality Reporting and Measurement System: Quality Incentive Payment System – Proposed Update April 2015 (PDF: 660KB/14 pages)

Past Reports

Updated Monday, April 20, 2015 at 11:57AM