November 21, 2007
CMS has provided Congress with a plan on how to structure a value-based purchasing program for hospital inpatient services under Medicare. The program would base a portion of a hospital’s reimbursement on how it performed on a number quality measures that reflect well-established processes and outcomes of care. This plan would broaden the current CMS program that ties a portion of the annual update for inpatient hospital care to hospital reporting on a set of quality measures.
In 2006, Congress directed that a value-based purchasing plan be implemented for Medicare by federal fiscal year 2009, which begins October 1, 2008. The transition from reporting on performance to actual payments based on performance would occur over a three-year period.
To read the CMS value-based purchasing plan, click here.
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