Value-Based Purchasing

Value-Based Purchasing
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Value-Based Purchasing
The approach of using value-based purchasing which ties payments to quality outcomes incorporates financial models that attach financial incentives and disincentives to performance providers. I prefer value-based purchasing since it requires health care providers to pay close attention to various factors that are not incentivized. Center for Medicare and Medicaid Services (CMS) has developed certain pay for performance models that impact health providers’ reimbursement through Medicare. Hospitals value-based purchasing is a model that allows hospitals to improve healthcare quality and patent experience while motivating hospitals to follow best clinical practices to enhance patient satisfaction. Additionally, value-based purchasing provides the hospital readmissions reduction program, and Medicare can penalize hospital with higher rates of readmissions as compared to other acute care hospitals. As such, hospitals with poor performance should accept a deduction of their Medicare payments. On the other hand, hospitals acquired condition reduction program which allows reduction of hospitals payments in the bottom quartile performance-based risk-adjusted measures.
The advantage of value-based purchasing is that it reduces costs since it involves a proactive measure to enhance service delivery. The principle of value-based purchasing is that care providers are responsible and accountable for service quality as well as costs by rewarding and penalizing for hospitals (Jha, 2017).

In addition, the approach leads to patient satisfaction due to reduced medical errors since it rewards bets performing care providers. Patient satisfaction is a significant approach that healthcare CMS uses to establish hospital performance. On the other hand, the disadvantages of value-based purchasing include the assignment of accountability to health care providers for services they neither can control nor deliver. Similarly, it does not hold physicians and hospitals accountable for the services they deliver. Additionally, it penalizes physicians and hospitals financially who care for patients with complex cases. Value-based purchasing may give misleading information to patients regarding the providers that offer lower-cost and higher quality services.

Reference
Jha, Ashish K. “Value-Based Purchasing: Time for Reboot or Time to Move On?” America Medical Association 2017, pp. 1107-08.