Yesterday, the Centers for Medicare and Medicaid Services (CMS) proposed to change the way it pays Medicare reimbursements to hospitals. (Kaiser Network)
CMS seeks to reduce payments by a flat rate (2 percent to 5 percent) to create an “incentive payment pool” for hospitals that meet quality of care thresholds. According to CQ HealthBeat, the plan would create a “Value-Based Purchasing Program.” Under this program, a hospital’s diagnosis-related group reimbursements would be based on quality performance.
Kerry Weems, acting administrator for CMS, said: “Value-based purchasing would benefit Medicare beneficiaries and other health care consumers by encouraging higher quality hospital care. Under the plan, additional information would be collected and publicly disseminated to patients and health care providers so that they can make better health care decisions.” (Source)
Weems added: “Getting hospitals to report their quality measures was an important first step. Now, building on that experience, we are taking the next step of actually rewarding hospitals for the quality of care they provide Medicare beneficiaries.”