CMS Issues Final Rule on New Value-Based Purchasing Program for Hospitals.

The Centers for Medicare & Medicaid Services (CMS) recently issued a final rule on a new value-based purchasing (VBP) program for acute-care hospitals. Under this program, which was mandated by the Patient Protection and Affordable Care Act, CMS will reward hospitals that provide high quality care through incentive payments. Hospitals are eligible to receive incentive payments, which will be tied to CMS’ payment system, if the organization meets or improves its performance standards on a set of 20 quality measures. According to CMS, the quality measures fall into one of two categories: (1) Clinical Process of Care Domain; and (2) Patient Experience of Care Domain. Hospitals will receive a score for each quality measure and the cumulative score will determine the amount of incentive payment each hospital will receive. To fully comply with the rules of the program and to receive the incentive payments, hospitals are strongly encouraged to review the final rule and the quality measures.

Department of Health and Human Services. “Administration Implements Affordable Care Act Provision to Improve Care, Lower Costs.” News Release. 29 Apr. 2011. The Centers for Medicare & Medicaid Services. “CMS Issues Final Rule for First Year of Hospital Value-Based Purchasing Program.” Fact Sheet. 29 Apr. 2011.