Why Does It Matter?

The Centers for Medicare and Medicaid Services (CMS) recently proposed Value-Based Purchasing as a new policy initiative “to drive improvements in clinical quality, patient-centeredness and efficiency” in hospitals. CMS’s goal is to “transform Medicare from a passive payer of claims to an active purchaser of care.” (SOURCE: Report To Congress: Plan to Implement a Medicare Value-Based Purchasing Program)

At the same time, healthcare consumers shoulder an increasing burden of the cost of healthcare, of which hospital services is a large part.

In this new reality, hospitals are subject to heightened demands for transparency and comparative information. It is no longer enough for a hospital to focus on incremental improvements in quality and outcomes. Hospitals will ultimately be judged, and in some cases reimbursed, based on the overall value that they deliver.

The Hospital Value Index™ is the first-ever benchmark designed to help hospitals understand their value proposition.