MedPAC Considers Draft Recommendation to Revamp Hospital Value Based Purchasing Program

At their December 6, 2018, public meeting the Medicare Payment Advisory Commission (MedPAC) considered a draft recommendation to revamp the Hospital Value Based Purchasing Program (HVBP).  Under the Hospital Value Incentive Program (HVIP), MedPAC proposes to merge the Hospital Readmission Reduction Program, the HVBP program and the Hospital Acquired Condition Reduction Program into a single program and to eliminate the Inpatient Quality Reporting Program.

The HVIP would include five outcome patient experience and cost measures (readmissions, mortality, spending, patient experience, hospital acquired conditions) and account for social risk factors by directly adjusting payment in peer groups to account for differences in provider patient populations. Adjusting for social risk factors through peer grouping would address criticism from hospitals who feel they have been unfairly treated under current quality programs because they treat a disproportionately high number of socioeconomically-disadvantaged patients.

MedPAC will vote on the HVIP draft recommendation as well as a series of Medicare 2020 payment update recommendations at their January 2019 public meeting for inclusion in their March 2019 Report to Congress.

Meeting presentation is available here. More information on MedPAC is available on their website.


For more information visit the McDermottPlus Payment Innovation Resource Center or contact Sheila Madhani at 202-204-1459 or