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'The Business of Health Care Report'

Value-Based Purchasing

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I’m Doug Hawthorne, CEO of Texas Health Resources, with “The Business of Health Care Report.”

Texas Health Resources hospitals have participated since 2003 in the Hospital Quality Incentive Demonstration, a national pay-for-performance program overseen by Premier Inc. and the Centers for Medicare & Medicaid Services.

The program provides financial incentives to hospitals for improving quality of care. Very simply, the goal of the project was to determine if financial incentives would motivate hospitals to make bigger strides in quality improvement. The answer was yes.

HQID was one of several pilots to lay the groundwork for what will become Value-Based Purchasing. A provision of federal healthcare reform, Value-Based Purchasing will link Medicare reimbursements to clinical quality outcomes and patient satisfaction scores.

CMS will provide financial incentives to hospitals that perform well in quality and patient satisfaction and penalize hospitals that perform poorly. The incentives and penalties are expected to begin in October 2012, but hospitals across the country are already being measured to establish national benchmarks.

Hospital quality outcomes measured will include heart attack, heart failure, pneumonia and surgical care, as well as patient safety and patient satisfaction. The goals of Value-Based Purchasing include:

  • holding hospitals accountable for providing safe, transparent, effective care, and
  • creating an environment where physicians and hospitals share clinical and financial accountability for healthcare in their communities.

For Texas Health Resources and its faith-based family of hospitals, Texas Health Presbyterian, Texas Health Harris Methodist, and Texas Health Arlington Memorial, I’m Doug Hawthorne.

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