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White House Rethinks How Best to Pay the Pros
wsj ^ | JULY 9, 2009

Posted on 07/08/2009 9:48:04 PM PDT by Red Steel

President Barack Obama believes you get what you pay for -- in business, in health care and in teaching. And in each of those spheres, he doesn't think the way the U.S. pays professionals is designed to get what the nation really wants and needs.

In executive suites, he says, we rewarded reckless risk-taking and got the worst recession in half a century. In doctors' offices and hospitals, we pay for more care instead of better care and get a wastefully expensive health-care system. In K-12 classrooms, we pay teachers, good and bad, for showing up instead of successful teaching and perpetuate schools that fail.

So Mr. Obama wants to pay professionals more only if they deliver more of what he thinks America needs, a bold bet on the economic principle that incentives do matter. If he succeeds, the changes to business, health care and education could last far beyond his presidency. But this is hard to do well. The risks of unintended consequences are large, and there's a chance we'll get more of what can be measured -- not what we truly want or need.

In business, Mr. Obama and Treasury Secretary Timothy Geithner are trying to redirect calls for imposing salary caps to mandating "pay for performance." This isn't foreign to companies: They have long said they intend to peg compensation to numerical results and aren't insulted by the notion that professionals are motivated by money.

In health care, Mr. Obama and his budget director, Peter Orszag, insist that the only way the nation can afford to cover the uninsured and keep health costs from devouring the federal budget is to find better ways to define and measure quality in medical care -- and then pay doctors and hospitals for providing it.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: obama
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1 posted on 07/08/2009 9:48:05 PM PDT by Red Steel
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To: Red Steel

Obama going to dictate who makes what in private enterprise? Congress going to pass this as law for you Obama or are you going to do this decree?


2 posted on 07/08/2009 9:50:40 PM PDT by Red Steel
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To: Red Steel

Put the Zero and his cohorts on pay for performance and they’d owe us.


3 posted on 07/08/2009 9:50:54 PM PDT by hometoroost (Torture? Would you rather do 5 years at Gitmo or 5 hours with the Muslims?)
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To: Red Steel

Good lord...can we say unconstitutional in this country anymore or are we just going to let Obama act like a dictator?


4 posted on 07/08/2009 9:51:12 PM PDT by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: Red Steel

“o find better ways to define and measure quality in medical care “

Which means you die......


5 posted on 07/08/2009 9:51:15 PM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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To: Red Steel
redirect calls for imposing salary caps to mandating "pay for performance."

And THEY decide what the performance levels are.....

6 posted on 07/08/2009 9:52:35 PM PDT by TexasNative2000 (Bush was the dumbest sounding smart President, and Obama is the smartest sounding dumb President.)
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To: Red Steel

And Hugo Chavez goes green with envy.


7 posted on 07/08/2009 9:55:38 PM PDT by Jim Robinson (Follow me on Twitter: http://twitter.com/jimrobfr)
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To: Red Steel

This community organizer has become an expert at everything—foreign policy, military, financials, cars, mortgages, AMAZING. Has he tried walking on water or calming the seas yet?


8 posted on 07/08/2009 9:55:47 PM PDT by notaliberal (Right-wing extremist)
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To: TexasNative2000

Hell, it certainly doesn’t work in the federal bureaucracy.


9 posted on 07/08/2009 9:57:30 PM PDT by RobbyS (ECCE homo)
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To: stephenjohnbanker

Or hold me responsible for my patients lifestyle and behavior choices, and whether or not they follow my treatment plan.


10 posted on 07/08/2009 9:58:11 PM PDT by Mom MD (Jesus is the Light of the world!)
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To: Mom MD

Exactly!!


11 posted on 07/08/2009 9:59:49 PM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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To: Red Steel
America wants to know.

Has Mister Obama had ANY training or coursework in traditional economics?

And, if so, what were his grades?

.

12 posted on 07/08/2009 10:00:40 PM PDT by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: notaliberal

I believe when he won the Dem Primary he said ‘let history reflect that this was the moment when the seas began to recede and the earth began to heal’. Yeah. He THINKS he is the Messiah. I suspect he is the opposite.


13 posted on 07/08/2009 10:01:43 PM PDT by originalbuckeye
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To: Mom MD

If O + company try to set salaries it’ll be yet another overreach. Govt has NO business inthis arena BUT it sounds as if their trial baloons about setting salaries has been roundly rejected, hence they float this pay for performance

P for P is good if the market is the decider. I’m not sure what justifies such huge compensations. I assume the various boards of directors know who is worth the big bucks, but look at sports...one must wonder.

Bottom line might be a more demanding and discrimanating consumer


14 posted on 07/08/2009 10:14:00 PM PDT by chiller (almost speechless)
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To: originalbuckeye

Meanwhile back in real life, as reported, Goldman Sachs will be giving out super large bonuses to keep quality staff. Where is THE ONE’s mouth on this?


15 posted on 07/08/2009 10:16:09 PM PDT by Achilles Heel
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Comment #16 Removed by Moderator

Comment #17 Removed by Moderator

To: Red Steel

Obama is a dumb a&&.


18 posted on 07/08/2009 10:24:06 PM PDT by freekitty (Give me back my conservative vote.)
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To: notaliberal

I watched this so you didn’t have to ........I paraphrased him but it’s even worse than my paraphrased account. He REALLY gets into himself at about 27:40. I was swearing at the computer. I simply CAN’T BELIEVE Americans were stupid enough to elect this opportunistic, pathological liar.

http://www.youtube.com/watch?v=dtL-1V3OZ0c&feature=fvw


19 posted on 07/08/2009 10:26:45 PM PDT by originalbuckeye
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To: chiller

Compensation is part of a contract between employer and employee. I don’t believe the feds, or staties, have any Constitutional role in dictating the structure of these contracts.

It’s like these eggheads have decided this country is America, Inc. and each of us works for one of it’s subsidiaries. Therefore, they can dictate the pay scale of anyone below the dick-tator.

If the gov’t tried this, it would have two immediate effects: 1-the talented would all be contactors where their little s or c corp gets the big compensation. 2-companies that didn’t do that would never be able to ‘steal’ talent from other companies.

I have a couple of questions for all these little fascists:
1-who is going to pay the taxes when the feds dictate employment contract structures and pay scales?
2-will this only affect “professionals” (doctors, business, teachers)?
3-what about lawyers, entertainers, lobbyists, people who write books for huge bonuses?
4-what about traditional hourly compensated employees and contractors? plumbers, lawyers (again), IT consultants, etc?

every day is a new outrage.


20 posted on 07/08/2009 10:27:20 PM PDT by laxcoach (our salvation will come from the states pushing back the feds, if it comes at all.)
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