Performance Measures and Incentive Payment Structure Sample Clauses
The "Performance Measures and Incentive Payment Structure" clause defines how a party’s performance will be evaluated and how incentive payments are determined based on meeting or exceeding specified benchmarks. Typically, this clause outlines measurable criteria such as delivery timelines, quality standards, or customer satisfaction metrics, and links these to a schedule of bonus payments or other financial rewards. Its core function is to motivate high performance by providing clear, objective standards and tangible financial incentives, thereby aligning the interests of both parties and encouraging the achievement of desired outcomes.
Performance Measures and Incentive Payment Structure. Contractor performance shall be calculated based on care delivered during the calendar year. Incentive payments after calendar year 2017, may be conditioned upon Contractor substantially maintaining or improving Contractor’s outcome on that individual measure from the previous year. Measures will be paid based on custom specifications and performance as determined by FSSA. Contractor shall submit information to FSSA, in the format and detail specified by FSSA, with respect to each performance measure set forth below. Any data received after the required submission date will not be eligible for an incentive payment. The amount of performance withhold at risk for pay for outcomes measures will be established for the first year (2017) and any changes year over year will be at the sole discretion of the State based on determined priorities. For each performance measure, it is anticipated that there will be three (3) tiers of withhold available to be earned. Rates will be set based upon the priority measure for the Contractor to earn fifty percent (50%), seventy-five percent (75%), or one hundred percent (100%) of the amount of the Performance Withhold at risk. Contractor is eligible to receive its incentive payment based on measurement year rate regardless of prior year performance.