Hospitals Prepare for Proposed Medicare Value-Based Purchasing (VBP) Reimbursement Plan With The Healthcare Management Council's Quality Dashboard

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The Healthcare Management Council, Inc (HMC) prepares hospitals for the proposed Centers for Medicare & Medicaid Services (CMS) Medicare Value-Based Purchasing (VBP) reimbursement plan with the HMC Quality DashboardTM.

In 2006, Congress passed the Deficit Reduction Act of 2005 (DRA), which authorized The Centers for Medicare & Medicaid Services (CMS) to develop a plan for Value-Based Purchasing (VBP) for Medicare hospital services. Value-based purchasing links payment to the quality of care provided. The Healthcare Management Council, Inc (HMC) prepares hospitals for the proposed Centers for Medicare & Medicaid Services (CMS) Medicare reimbursement plan with the HMC Quality Dashboard.

The Centers for Medicare & Medicaid Services (CMS) released its Issue Paper entitled "U.S. Department of Health and Human Services Medicare Hospital Value-Based Purchasing Plan Development -- Issues Paper -- 1st Public Listening Session - January 17, 2007". This Issue Paper puts hospitals on notice that CMS plans to cease its practice of paying for Medicare services based on volume, and will instead be paying for Medicare services based on quality. From the Issue Paper:

"The Centers for Medicare & Medicaid Services (CMS) has articulated a vision for health care quality--the right care for every person every time. To achieve this vision, CMS is committed to care that is safe, effective, timely, patient-centered, efficient, and equitable. Medicare's current payment systems reward quantity, rather than quality of care, and provide neither incentive nor support to improve quality of care. Value-based purchasing (VBP), which links payment more directly to the quality of care provided, is a strategy that can help to transform the current payment system by rewarding providers for delivering high quality, efficient clinical care. Through a number of public reporting programs, demonstration projects, pilot programs, and voluntary efforts, CMS has launched VBP initiatives in hospitals, physician offices, nursing homes, home health services, and dialysis facilities.

Beginning in FY 2007, hospitals are required to report to Medicare their performance on 21 measures to obtain their full payment update; the DRA envisions that this set of measures will expand over time. Failure to report on the measures, which are required to be identified by the Secretary of Health and Human Services (HHS) in consultation with stakeholders, will result in a 2.0 percentage point reduction in the Annual Payment Update (APU) for inpatient hospital services."

Read the full PDF report at cms.hhs.gov.

The Healthcare Management Council, Inc. helps prepare hospitals for value-based purchasing with the HMC Quality Dashboard. The HMC Quality Dashboard tracks AHRQ quality indicators at hospitals and preventively alerts hospital staff to quality problems early, so they may be remedied before they result in reduction of Medicare reimbursement rates.

Further reading:

About The Healthcare Management Council, Inc:

HMC is a hospital performance improvement company that helps its Partner facilities lower their costs and increase quality. HMC helps hospitals succeed in a highly competetive healthcare environment with its online cost and quality benchmarks and facilitated community of thousands of hospital staff that share ideas for lowering costs and increasing quality.

HMC Web site: HMC-Benchmarks.com

Download the HMC hospital performance improvement brochure (PDF 1MB)

Contact: Shelley Burns at (262) 242-9471

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