The Local Initiative Rewarding Results project was part of a three-year national initiative of the Robert Wood Johnson and California HealthCare Foundations to test whether financial performance incentives for providers can improve health care quality. The incentive program, which ran from 2002 through 2004 and was coordinated by the Center for Health Care Strategies, paid out $5 million and involved 3,300 physicians touching the lives of 350,000 babies, adolescents, and parents. Of the seven Rewarding Results projects nationwide, the Local Initiative Rewarding Results Project was the only activity focusing on the Medicaid population.
Under Local Initiative Rewarding Results, eight California health plans participated in a collaborative project to test the impact of financial and non-financial incentives on provider quality. The project goal was to improve the quality of and access to preventive care services to children and adolescents by increasing the rate of annual adolescent visits and preventive care visits for infants from birth to 15 months of age. The key areas of focus were well-baby visits, well-adolescent visits, and encounter data submissions from capitated providers. The plans also piloted member incentives to increase the rate of well visits for adolescents and babies.