ABSTRACT
Pay for performance (P4P) is a payment approach used in healthcare that is based on clinical information-driven reform. The fundamental concept of this method is to tie payment to how well providers comply to practice standards. This article will analyze those concepts including the essential building blocks, models, and selected programs of P4Ps, as well as information technology's impact on P4Ps. The nurse manager and nurse executive need to be familiar with this method to participate in the evaluation and implementation of such plans.