Health Policy Manag.  2017 Jun;27(2):121-127. 10.4332/KJHPA.2017.27.2.121.

Reviews of Pay-for-Performance and Suggestion for Korean Value Incentive Program

  • 1Department of Public Health, Yonsei University Graduate School, Seoul, Korea.
  • 2Institute of Health Services Research, Yonsei University, Seoul, Korea.
  • 3Department of Preventive Medicine, Yonsei University College of Medicine, Seoul, Korea.


The effort to measure and improve the quality of healthcare is a common health policy issue worldwide. Korean Value Incentive Programme is one of that effort, but some concerns exist. Compared to pay for performance program in other countries, it measures healthcare quality with relatively narrow performance domain using a small number of clinical indicators. It was designed without involving hospitals and other key stakeholder, and program participation was mandated. Highest and lowest performers get bonus and penalty using relative ranking. As a suggestion for development, the direction for quality management at the national level should be given first. Therefore the philosophy or strategy for quality improvement should be reflected to the program. And various domains and indicators of healthcare quality should be developed with active communication with healthcare providers. The evaluation method is necessary to be changed to provide achievable goal to the healthcare providers and attract quality improvement.


Pay for performance; Value Incentive Program; Quality of health care

MeSH Terms

Health Personnel
Health Policy
Quality Improvement
Quality of Health Care
Reimbursement, Incentive
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