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What’s the Hospital Value-Based Purchasing (VBP) Program?

The Hospital VBP Program rewards acute care hospitals with incentive payments for the quality of care they give to people with Medicare. This program adjusts payments to hospitals under the Inpatient Prospective Payment System (IPPS) based on the quality of care they deliver.

Why’s the Hospital VBP Program important?

The Hospital VBP Program is designed to make:

  • The quality of care better for hospital patients.
  • Hospital stays a better experience for patients.

The Hospital VBP Program encourages hospitals to improve the quality and safety of acute inpatient care for Medicare beneficiaries and all patients by:

  • Eliminating or reducing adverse events (healthcare errors resulting in patient harm).
  • Adopting evidence-based care standards and protocols that make the best outcomes for the most patients.
  • Changing hospital processes to make patients’ care experiences better.
  • Increasing care transparency for consumers.
  • Recognizing hospitals that give high-quality care at a lower cost to Medicare.

How does the program work?
We pay participating hospitals for inpatient acute care services based on the quality of care they provide, not the quantity of services they provide, in a given performance period.

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