These initiatives provide financial incentives to hospitals, doctors and other healthcare providers to improve and secure patient care. You have to be careful, as we learned from (Gittleman, 2015) “Because some bonuses may be only weakly tied to performance (for example, if a bonus is received in lieu of payment of a benefit or for referring a worker to the company), an examination of the sensitivity of the results to the definition is warranted. It is important that the organization gives the employee something tangible for their results. Pay for performance, also known as "P4P", will also penalize poor patient outcomes. medical errors and increased unnecessary costs. a healthcare provider meets their performance metrics for reducing hemoglobin A1c in diabetes patients over time (decrease from year to year), will be rewarded reduce hospital readmissions for the same