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CMS value-based purchasing

This article was originally published in The Gray Sheet

Executive Summary

CMS report to Congress on value-based purchasing, released Nov. 26, suggests setting aside 2%-5% of hospital inpatient payments to use as a financial incentive to reward hospitals that meet or show substantial improvement for 20 quality measures. Congress asked the agency to come up with the plan in time to implement changes for fiscal year 2009 (1"The Gray Sheet" April 30, 2007, p. 12). The report outlines a three-year phase-in, building upon current pay-for-reporting requirements. Proposed measures relate to process-of-care, outcomes and patient satisfaction for treatment of heart attack, heart failure, pneumonia and surgical infection prevention. Industry says it will closely watch how Congress acts on the report to ensure that any future incentive-based program does not interfere with patient access to care
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