Pincer funding: how to support appropriate coding of adverse events without rewarding bad behaviour

There’s a problem with correct coding of adverse events. In effect, we want a system that rewards correct coding, but punishes harmful behaviour.

If the institution is punished in any way for adverse events, they will be far less likely to code their occurrence.

If the institution is not punished (i.e. rewarded or unaffected) for adverse events, then adverse events will either continue or at best remain unchanged.

A thought bubble had today at the safety and quality commission workshop involves the idea of a pincer funding arrangement, specifically suited to Australia’s current funding arrangements.

At the local hospital district (or individual hospital) level, pay for coded adverse events, but then impose financial penalties at the state (or local hospital district) level.

I imagine they’d just all learn new ways to game this, but the intent is to reward correct coding, but punish harmful behaviour.