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Hospitals with more medically complex patients, uncompensated care, and patients who live alone are more likely to receive a penalty under CMS value-based payment programs, according to a new study calling for change to the programs.
The study from the Federation of American Hospitals and Dobson DaVanzo and Associates, LLC suggests value-based payment programs like the Hospital Readmissions Reduction Program (HRRP), the Hospital Value-Based Purchasing (VBP) Program, and the Hospital-Acquired Condition (HAC) Reduction Program do not adequately account for health equity factors when determining incentive payments. The first two programs were implemented in 2012, while the latter launched in 2014.
The CMS value-based payment programs aim to promote quality improvement by adjusting inpatient reimbursement based on hospital performance on quality measures. Other goals include decreasing adverse events and making hospital quality more transparent.