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CMS-1403-FC
9 percent per year. 2 In addition to these rapid increases
in cost, the Dartmouth Atlas
(http://www.dartmouthatlas.org/) shows that there is
significant geographic variation in the amount of services
Medicare beneficiaries receive, with little or no
relationship to outcomes. 2 We are implementing value-based
purchasing (VBP) initiatives in response to these
concerning trends. VBP ties payment to performance through
the use of incentives based on measures of quality and cost
of care. The implementation of VBP will transform CMS from
a passive payer of claims to an active purchaser of higher
quality, more efficient health care for Medicare
beneficiaries. Our VBP initiatives include hospital pay
for reporting (the Reporting Hospital Quality Data for the
Annual Payment Update program), physician pay for reporting
(the Physician Quality Reporting Initiative), home health
pay for reporting, the Hospital VBP Plan Report to
Congress, and various VBP demonstration programs across
payment settings, including the Premier Hospital Quality
Incentive Demonstration and the Physician Group Practice
Demonstration.
2 Assessing Alternatives to the Sustainable Growth Rate System. Medicare Payment Advisory
Commission Report to Congress. March 2007.
http://www.medpac.gov/documents/Mar07_SGR_mandated_report.pdf .
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