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Description of Value-Based Purchasing (VBP)

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  1. Elements of the VBP
  2. Impact of VBP on payment of Health Care

This is an initiative by the Centers for Medicare and Medicaid Services (CMS) that is meant to reward or punish acute-care health centers through incentives payments depending on the care quality given to beneficiaries of Medicare. It was authorized by the Congress under the Affordable Care Act 2010. According to the National Business Coalition on Health, the Value-Based Purchasing could be described as a strategy of the demand side for measuring, reporting and rewarding excellence in delivery of health care. It involves the actions of health plans, coalitions, individual consumers, or employer purchasers as they decide on; accessibility, quality, price, incentives alignment and efficiency.

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