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How Value-Based Purchasing Will Affect Healthcare Suppliers

Posted by Stan Schroeder on Wed, Jun 08, 2011 @11:15 AM

A new program mandated by the federal government is offering opportunities to healthcare suppliers that can tailor their products and services in ways that help hospitals achieve performance benchmarks in categories set by the Centers for Medicare and Medicaid Services (CMS).
 
Starting on Oct. 1, 2012, with the beginning of the 2013 fiscal year, Medicare hospitals and healthcare providers will be required to have in place value-based purchasing (VBP) programs, which will tie a portion of their Medicare payments to performance on measures related to certain conditions, such as heart attacks, heart failure and pneumonia – to name a few. Eventually, other parameters will be added to incorporate "efficiency measures, including measures of 'Medicare spending per beneficiary,'" adjusted for adjusted for age, sex, race, severity of illness and other factors.
 
VBP programs are a way for to CMS to encourage – and provide incentives to – healthcare providers to buy products that can demonstrate value by reducing costs and improving patient outcomes in areas CMS has identified for improvement. Suppliers that can develop and market products and services that meet this need can move ahead of competitors and capture larger shares of the market.
Essential Healthcare Management’s team of experts can help. They work with companies to specifically target products to Medicare hospitals and healthcare providers by devising sales and marketing strategies and by connecting them with key purchasing decision-makers.
 
To learn more, contact us.

Tags: medical, hospitals, healthcare suppliers, Healthcare Service Provider, Quality, CMS, Center for Medicare and Medicaid Services, Value-Based Purchasing, Medicare, VBP, patient satisfaction, business growth

What is Value-Based Purchasing?

Posted by Stan Schroeder on Wed, May 25, 2011 @11:28 AM

In January, the Centers for Medicare and Medicaid Services (CMS) proposed policies for implementing a value-based purchasing (VBP) program for Medicare hospitals in accordance with the Affordable Care Act passed by Congress in 2010. Last month, the CMS solidified the VBP program by releasing a final rule that requires performance metrics. The VPB program will go into effect beginning in fiscal year 2013.

Value-based purchasing is a new concept that focuses on increasing the value that comes from purchasing medical supplies in a tangible way that can be assessed through metrics. CMS has helped identify certain aspects of hospital service that can be measured and improved, including everything from product costs and payment expediency to improving patient outcomes and customer service scores.

If the metrics indicate that a Medicare hospital has been demonstrating high levels of performance in these areas by purchasing these products, then the hospital becomes eligible to receive higher reimbursement levels, which translates directly into more money for purchasing. Payments made for hospital performance and quality measures will begin in fiscal year 2013.

So what does the implementation of value-based purchasing mean for hospitals and healthcare service providers? How will it affect healthcare suppliers? As an industry leader in connecting healthcare service providers with purchasers in hospitals, we will be examining the effects of value-based purchasing in respect to quality and cost in the coming weeks.


Next week: How Value-Based Purchasing Will Affect Hospitals and Healthcare Service Providers

Following week: How Value-Based Purchasing Will Affect Healthcare Suppliers

Tags: Essential Healthcare Management, EHM, healthcare, medical, hospitals, healthcare suppliers, Healthcare Service Provider, Quality, CMS, Center for Medicare and Medicaid Services, Value-Based Purchasing, Medicare, Affordable Care Act, VBP, business growth