In an effort to improve the quality and safety of hospitals, the federal Centers for Medicare & Medicaid Services (CMS) implemented a value-based purchasing program (VBP). This program, through proposed regulations, links Medicare inpatient payments to performance on select quality measures. Hospitals can earn incentive payments for demonstrating quality and safety improvements and achievements. Hospitals receive a VBP score that is based on process-of-care measures and eight
Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) dimensions. Beginning in fiscal year 2013, 1 percent of inpatient payments will be at risk, with increases in time as additional measures are added.