Value Based Purchasing

The Basics of Hospital Value-Based Purchasing

heidi Hospital Discharge, Medicare News Comments Off on The Basics of Hospital Value-Based Purchasing , ,

The Basics of Hospital Value-Based PurchasingIn the new Hospital Value-Based Purchasing (VBP) Program, Medicare rewards hospitals that provide high quality care at competitive costs for their patients. Since October 2012, hospitals nationwide are being paid for inpatient acute care services based on documented quality care measures rather than the volume of services.


Established under the Affordable Care Act, the Hospital VBP Program has implemented a pay-for-performance approach to the payment system that accounts for the largest share of Medicare spending, affecting payment for inpatient stays in over 3,500 hospitals across the country.

“Instead of payment that asks, ‘How much did you do?’ the Affordable Care Act clearly moves us toward payment that asks, ‘How well did you do?’ and more importantly, ‘How well did the patient do?’” according to Dr. Don Berwick, Centers for Medicare and Medicaid Services (CMS) Administrator. Read more