The CMS proposed regulations that would establish in fiscal 2013 a new hospital value-based purchasing program for Medicare that would reward hospitals for providing high quality, safe care for patients. Required by the Patient Protection and Affordable Care Act, the program applies to payments for discharges occurring on or after Oct. 1, 2012, and would make value-based, incentive payments to acute-care hospitals.
Late News: CMS offers proposed regs for value-based purchasing
Those payments would be based either on how well the hospitals perform on certain quality measures, or how much the hospitals' performance improves on certain measures from their performance during a baseline period. According to the CMS, the higher the performance, the higher the incentive payment will be. The financial incentives would be funded through a reduction in the base operating DRG payments for each discharge, which would be 1% in fiscal 2013 and increasing to 2% by fiscal 2017. According to the CMS, the agency proposes to use 17 clinical process-of-care measures as well as eight measures from the Hospital Consumer Assessment of Healthcare Providers and Systems, or HCAHPS, survey that document patients' experience of care. In addition, the agency proposes to adopt three mortality outcome measures, eight hospital-acquired condition measures, and nine measures from HHS' Agency for Healthcare Research and Quality measures for the 2014 value-based purchasing program.
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