Value-Based Purchasing (VBP)

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.

Resources for this section

  • 2/9/11: New Medicare Hospital Value-Based Purchasing Program - Webinar PDF format2/9/11: New Medicare Hospital Value-Based Purchasing Program - Webinar

    The Centers for Medicare & Medicaid Services (CMS) released a proposed rule to implement a Hospital Value-Based Purchasing (VBP) program, as required by the Affordable Care Act. As statutorily mandated, Medicare payments would be reduced beginning in fiscal year 2013 to fund incentive payments to hospitals achieving certain quality-based performance scores. Members gave feedback on the impact of the proposed rule. Member comments will guide NAPH’s submission of comments. A brief summary of the content of the proposed rule can be accessed here.

Useful Links
  • HCAHPS: Beyond the Basics
    Check out America's Essential Hospitals' HCAHPS Learning Network, which provides members of the association with free education and performance improvement support through an interactive, distance learning program to improve Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) survey scores.

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