Evaluation of the Maryland Quality-Based Reimbursement System

In July 2009, the State of Maryland modified its payment structure for acute inpatient stays at non-federal hospitals to include a pay-for-performance component based on adherence to guidelines and avoidance of preventable complications.

With Robert Wood Johnson Foundation funding, AIR is working with the Maryland Health Services Cost Review Commission to evaluate the effects of this quality-based reimbursement program, including the use of quality indicators as part of the reimbursement algorithm and their impact on organizational issues, quality, cost and disparities.