C-Suite Cheat Sheet: Hospital Value-Based Purchasing

Educational Briefing for Suppliers and Service Providers

Executive Summary

The Hospital Value-Based Purchasing (VBP) Program adjusts hospital inpatient Medicare payments based off performance on a set of quality and efficiency measures. It is one of three mandatory pay-for-performance (P4P) programs that the Affordable Care Act introduced and is managed by the Center for Medicare and Medicaid Services (CMS). VBP promotes quality care delivery, positive patient experience, and cost effectiveness by factoring each of these elements into scoring. Like the other P4P programs, low-scoring hospitals see lower reimbursement rates, but VBP is the only program in which high-scoring hospitals see an increase in their Medicare reimbursements, resulting in a net neutral effect on the budget. 


Members of the Health Care Industry Committee can log in to read more and download the cheat sheet. Not a member? Visit our website or contact us to learn more.

← View our full library of cheat sheets Next, learn about

Log in to access this.

Full access to this content is reserved for Health Care Industry Committee members.
Log in or learn how membership works.

Next, Check Out

C-Suite Cheat Sheet: Bundled Payments

More