Final answer:
The incentive model described is Pay-for-performance, which rewards healthcare providers for meeting performance criteria, diverging from traditional fee-for-service and HMO models.
Step-by-step explanation:
The type of incentive to improve clinical performance using electronic health records that results in additional reimbursement or eligibility for grants or other subsidies to support further health information technology efforts is A. Pay-for-performance. This model offers healthcare provider incentives for meeting certain performance metrics. Traditionally, healthcare in the U.S. operated on a fee-for-service basis, encouraging providers to offer more services to increase their payment. In contrast, health maintenance organizations (HMOs), which pay a fixed amount per patient regardless of services rendered, incentivize providers to limit care to essential services only. To counterbalance the potential for under-treatment, particularly for patients with more complex needs, many compensation models now combine elements of managed care and fee-for-service.