Value-Based Purchasing (VBP)

According to Centers for Medicare and Medicaid Services, Value-Based programs reward health care providers with incentive payments for the quality of care they give to people with Medicare.

Examples of Value-Based Purchasing (VBP) Investment Activities

VBP Investment Activites Examples of Allowable Activities
A. Quality reporting data collection/related training or software

CAHs should participate in Medicare Beneficiary Quality Improvement Project (MBQIP)

MBQIP Resources

Any activity to support process improvements that result in improved quality reporting and/or inpatient and outpatient measures for PPS acute care hospitals.

B. HCAHPS data 

Activities to improve HCAHPS data collection, reporting, provider communications, patient and family engagement that directly impact patient satisfaction scores. Hospitals may use funds to support an HCAHPS vendor to assist them in fully implementing HCAHPS and improve reporting.

         C. Efficiency or quality improvement training in support of VBP related initiatives

Consider adopting Six Sigma, Lean, Plan-Do-Study-Act, or other such efficiency or quality improvement processes to address performance issues related to VBP initiatives, such as the following:

D. Provider-Based Clinic (Rural Health Clinic) quality measures education

Any activity that supports educational training for provider-based clinic quality improvement reporting and scores, including patient satisfaction survey scores.

E. Alternative Payment Model and Quality Payment Program training/education

Software or training to prepare staff and physicians for Quality Payment Program (QPP), which determines payment based on quality, resource use, clinical practice improvement, and meaningful use of certified electronic health record (EHR) technology.

* New or expanded activities and examples

Provided below is a bar graph of the number of SHIP hospitals between FY2016 - FY2018 that invested in VBP specific investment activities.

Resource List

This project is/was supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under grant number UB1RH24206, Information Services to Rural Hospital Flexibility Program Grantees, $1,009,121 (0% financed with nongovernmental sources). This information or content and conclusions are those of the author and should not be construed as the official position or policy of, nor should any endorsements be inferred by HRSA, HHS or the U.S. Government.