Measuring Outcomes And Efficiency In Medicare Value-Based Purchasing

Tompkins, Christopher P.; Higgins, Aparna R.; Ritter, Grant A.
March 2009
Health Affairs;2009 Supplement 1, Vol. 28, pW251
Academic Journal
The Medicare program may soon adopt value-based purchasing (VBP), in which hospitals could receive incentives that are conditional on meeting specified performance objectives. The authors advocate for a market-oriented framework and direct measures of system-level value that are focused on better outcomes and lower total cost of care. They present a multidimensional framework for measuring outcomes of care and a method to adjust incentive payments based on efficiency. Incremental reforms based on VBP could provoke transformational changes in total patient care by linking payments to value related to the whole patient experience, recognizing shared accountability among providers.


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