HHS launches value-based purchasing program

On April 29, the Department of Health and Human Services (HHS) launched a new initiative that will reward hospitals for the quality of care they provide to Medicare beneficiaries and help reduce healthcare costs. Part of the Patient Protection and Affordable Care Act, the Hospital Value-Based Purchasing program will pay hospitals for inpatient acute care services based on care quality, not the quantity of the services.

“Changing the way we pay hospitals will improve the quality of care for seniors and save money for all of us,” said HHS Secretary Kathleen Sebelius in an HHS press release. “Under this initiative, Medicare will reward hospitals that provide high-quality care and keep their patients healthy. It’s an important part of our work to improve the health of our nation and drive down costs. As hospitals work to improve their performance on these measures, all patients – not just Medicare patients – will benefit.”