Medicare's Value Based Purchasing ProgramApril 25, 2012 — 921 views
One of the greatest sources of waste the federal government is responsible for is Medicare. While the service provides a great deal of help to the elderly who receive subsidized healthcare and is worth saving, it nevertheless contributes to millions of dollars of waste a year. That's one of the reasons the Patient Protection and Affordable Care Act (PPAC) of 2010 was passed - to improve the services provided through Medicare subsidies while eliminating a lot of extraneous costs associated with the program.
One of the components of PPAC that is soon going into effect is the value based purchasing program. This system essentially improves the process by which hospitals and other acute care facilities are reimbursed for the medical services they provide to elderly patients.
The value based purchasing program basically injects more accountability into Medicare reimbursements. PPAC established 13 benchmarks healthcare facilities must achieve during the course of sessions with Medicare-eligible patients. If they can demonstrate that they met these goals and were able to drive down the costs associated with the services they provide, they're eligible for monetary bonuses. In fact, there will be around $850 million available to organizations nationwide beginning in the fiscal year that starts in October 2012, so the private businesses providing healthcare in the United States should be adequately stimulated to cut down on unnecessary spending.