Value-based purchasing is a key component of the Patient Protection and Affordable Care Act (better known as 'The Reform Bill')...and there's stuff in there that you really need to start paying attention-to now!
Briefly, your hospital's base DRG will be reduced by 1% starting Oct 1, 2012, and accelerating in the years after that. This money goes in to a 'bonus pool' to incent hospitals to improve HCAHPS performance. Hospitals can earn-back their reduction through performance improvements measured by HCAHPS, the greater of either achievement or improvement.
It's a complex formula, that I'd be happy to share with you, and model your hospital for you.
Here's what you need to pay attention to now:
1. The benchmarking period begins Oct 1, 2011. This is when your HCAHPS scores 'start meaning something', and will factor into the equation that determines your Medicare Reimbursement in 2012.
2. You can calculate the cost of your performance (in Medicare Reimbursement dollars) by HCAHPS dimension. This will allow you to develop a meaningful, prioritize plan that links operations and patient experience directly to your bottom line.
3. There are elements in the Legislation that make HCAHPS-VBP a bit of a moving target yet. The more performance improvement initiatives that you have effectively in place now, the more engaged and collaborative your staff are in the process of improvement, the stronger you'll be in just a few months down the road.
4. The financial impact can be very significant.
Give me a call at 403.607.7444 or email me directly at email@example.com, and I'll present a customized VBP assessment to you.