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Value Based Purchasing

Value based purchasing has been developed by government and 3rd party payors. This performance based program links health providers’ payments to a contract for services.

The idea behind these efforts is based on determining a set of predefined performance measures aimed at achieving better value for 3rd Party reimbursement. Financial incentives are now driving provider improvements in quality outcomes and 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.

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.

Current efforts are based on determining a set of predefined performance measures aimed at achieving better value for reimbursement monies spent by driving provider improvements in quality outcomes and slowing the growth in health care spending.

All healthcare providers should look at value based purchasing as changes in pay-for-performance measures.