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Hospitals

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Value-Based Purchasing (VBP)<br />

• Move from pay-for-reporting to pay-for-performance<br />

• Must meet thresholds based on achievement or<br />

improvement to receive incentive payment<br />

• Phased-in reduction to base DRG payment to fund<br />

incentive pool: 1% for FY2013 increasing by quarter<br />

increments annually up to 2% in FY2017<br />

• Applies to base DRG payment only, does not affect<br />

IME, DSH and outlier payments<br />

• Budget neutral – all funds are returned to hospitals<br />

2012 AAMC Annual Meeting

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