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Value Based Purchasing

Value based Programs are a broad set of government developed performance based payment strategies linking financial incentives to a health providers performance. The idea behind these efforts is based on determining a set of predefined performance measures aimed at achieving better value for government monies spent by driving provider improvements in quality outcomes as well as slowing the growth in health care spending.

 What should be of major strategic concern to behavioral health providers today – is the new reality that the National Institutes of Health (NIH), and the Centers for Medicare and Medicaid Services (CMS) have already been moving forward over the last five years with the testing of these advanced VBP models, starting with pay- for- reporting programs.

Value Based Program models are recent developments in the health system, and they represent a work in progress in terms of our understanding of how best to design both Medical and Behavioral Health Services to achieve improved healthcare performance goals. Included in this evaluation process are the optimal conditions for their successful implementation, and the expected provider responses to the incentives. The design features and the context in which VBP programs are implemented will become critical determinants of an individual treatment programs financial success or failure.