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Medicare Physician Group Practice Demonstration information


The Medicare Physician Group Practice (PGP) demonstration was Medicare's first physician pay-for-performance (P4P) initiative. The demonstration established incentives for quality improvement and cost efficiency. Ten large physician groups participated in the demonstration, which started on April 1, 2005, and ran for 5 years. Previous funding arrangements, like the volume performance standard (VPS) and the sustainable growth rate (SGR) did not provide incentives to slow the growth of services.[1] The Medicare PGP demonstration was intended to overcome that limitation in previous funding arrangements.

  1. ^ Kautter, J.; Pope, G. C.; Trisolini, M.; Grund, S. (2007). "Medicare Physician Group Practice Demonstration Design: Quality and Efficiency Pay-for-Performance". Health Care Financing Review. 29 (1): 15–29. PMC 4195009. PMID 18624077.

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