This document discusses the importance of good data and performance measurement in improving healthcare quality, outcomes, and affordability. It notes that while process measures for diabetes care are high, outcomes are still lacking. Healthcare spending is growing much faster than wages or inflation, demonstrating an economic imperative to address costs. The document then outlines components of an alternative contract model between physicians and hospitals that ties payment to quality performance and cost control goals like global budgets tied to inflation. It provides low back pain referrals as an example of using data analysis to improve practice patterns and reduce wasteful care.