Payment given to an employee or service provider based on the amount of work done, the quality of work, the number of products sold or the number of goods produced.
The UK Department of Health states of its PbR:
“The aim of Payment by Results (PbR) is to provide a transparent, rules-based system for paying trusts. It will reward efficiency, support patient choice and diversity and encourage activity for sustainable waiting time reductions. Payment will be linked to activity and adjusted for casemix. Importantly, this system will ensure a fair and consistent basis for hospital funding rather than being reliant principally on historic budgets and the negotiating skills of individual managers”.