How Does Medicare Value-Based Purchasing Work?

  • The U.S. health care system still largely pays for the volume of health care services provided rather than the value of that care to patients. Medicare is undertaking several initiatives to coax the system toward paying for value.
  • One such initiative is Medicares Value-Based Purchasing Program, created under the Affordable Care Act of 2010 to reward hospitals when they meet certain standards for delivering high-quality care to patients.
  • Paying for value is difficult. Policy-makers struggle with whether to use process or outcome measures, among other issues.

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Learn How We Work Toward

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