A Breakdown of the ACA’s Value-based Reimbursement

The Hospital Value-based Purchasing Program and Hospital Readmission Reduction Program have already made an impact on healthcare systems since they were instituted by the Affordable Care Act in 2010.

As mandated by the Centers for Medicare & Medicaid Services (CMS), this initiative awards acute-care hospitals with incentive payments for the care they provide to Medicare patients.

In turn, the CMS changed the way they pay hospitals. Instead of paying for services on a volume-based model, like the number of hospital stays, CMS now uses those funds to pay healthcare providers based on the quality of care they provide to Medicare patients.

 

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