OBJECTIVES: The literature on pay-for-performance (P4P) has rarely studied health-related quality of life among type 2 diabetes mellitus using EuroQol-5D (EQ-5D). This study assesses the difference in health status and health-related quality of life among patients participating in a newly featured P4P program and those not participating in the program. METHODS: Respondents at hospitals completed EQ-5D during 2016. A visual analog scale (VAS) score and health index score were computed, and the difference was measured for P4P and non-P4P participants (selected by propensity score matching). This study uses linear regression models to determine the change in the EQ-5D score, controlling for age, gender, A1C, LDL, body mass index (BMI), duration, comorbidity, and severity.  RESULTS: There is an insignificant increase in the EQ-5D index score in the P4P group (0.002 [SE 0.03], P=0.93), compared with the non-P4P group after controlling for patient factors. The between-group difference in the EQ-5D VAS score is not significant after controlling for patient factors (-1.63 [SE 2.42], P=0.50).  CONCLUSIONS: There is no difference in health status and health-related quality of life among patients participating in the newly featured P4P program versus non-participants.