Hospital Value-Based Purchasing 2025

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The Hospital Value-Based Purchasing (VBP) Program is part of our ongoing work to structure Medicares payment system to reward providers for the quality of care they provide. This program adjusts payments to hospitals under the Inpatient Prospective Payment System (IPPS), based on the quality of care they deliver.
Under VBP, organizations have the potential for upside or downside reimbursement. If their services meet performance measures in the four CMS quality domains (Clinical Care, Patient- and Caregiver-Centered Experience of Care/Care Coordination, Efficiency and Cost Reduction, and Safety), they will receive a bonus.
Value-based care arrangements tie payment amounts for services provided to patients to the results that are delivered, such as the quality, equity and cost of care.
What are the four domains used in the Hospital Value-Based Purchasing Program? The four domains include (1) clinical outcomes, (2) person and community engagement, (3) safety, and (4) efficiency and cost reduction.
Also known as value-based payments, financial incentives are a key component of value-based care. These payments may link clinician, hospital, or health system compensation to performance on specific cost, quality, and equity metrics.
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The four primary types of value-based healthcare programsfee-for-value, quality incentives, shared savings and risk, and global capitationsit on a spectrum of risk, complexity, and scale, and your goals as a healthcare organization will determine which program, or combination of programs, will most benefit you and

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