Are Hospitals Ready for Value-Based Purchasing?

The Centers for Medicare & Medicaid Services (CMS) released its highly anticipated final rule earlier this summer1 implementing a Medicare Value-Based Purchasing Program (VBP) as required under the Patient Protection and Affordable Care Act (ACA).  VBP is just one of the many initiatives mandated by Congress in an attempt to forge a closer link between Medicare payment systems and improvement in the quality and safety of health care delivery.  VBP is also another step in the ongoing shift from the fee-for-service system to a value-based, result-oriented system.  This article is intended to serve as a call to action for hospitals by providing a succinct overview of the VBP and some general considerations.