Healthcare Changes Forcing Hospitals to Employ New Tools

Healthcare Changes Forcing Hospitals to Employ New Tools-Image via Wikipedia

If value-based purchasing (VBP) was in effect today, approximately 4,100 hospitals would be subject to the program and all but 100 hospitals would lose money. With changes to Medicare reimbursement around the corner, it is crucial for hospital leaders to understand how their facility is positioned for this new era. To help hospitals estimate how their payment could be affected by VBP, Press Ganey Associates, Inc. today unveiled its Value-Based Purchasing Calculator at the Institute for Healthcare Improvement’s 22nd Annual National Forum on Quality Improvement in Health Care in Orlando, Fla.

“Given the complexity of calculations and the continuing refinement to the legislation, most hospitals find it very difficult to determine their position or to prioritize improvement initiatives within their hospital according to estimated value-based purchasing impact,” said Richard B. Siegrist Jr., CEO of Press Ganey. “With this new tool, hospital leadership can get a clearer picture of their position so they can effectively align their improvement initiatives across the board to maintain reimbursement and help enhance their bottom line.”

VBP calculation methodology is both complex and fluid and VBP incentive payments are funded entirely through a Medicare payment holdback. The Press Ganey Value-Based Purchasing Calculator can help provide hospitals a better understanding of a number of critical factors, including:

  • What may be at risk if VBP were in effect today.
  • How performance at the measure-level contributes to value-based purchasing incentive payments.
    • A one-point improvement on one measure’s VBP score may be substantially more valuable in terms of reimbursement than a five-point improvement on another measure.
  • How to prioritize areas for improvement according to size of the opportunity by comparing the investment required to the net effect of improvement to the bottom line.

“The VBP tool has given us a tremendous resource to be able to track our performance and the performance of our physicians in complying with the government’s pay-for-performance standards,” said Jeff Fried, President and CEO of Beebe Medical Center in Lewes, Del. “Without such a tool, I’m not sure how we would be able to both track our compliance as well as quantify our performance. By using this tool to share our collective results with the board and our medical staff, we have already seen a significant improvement in our overall performance.”

The baseline assessment year for all hospitals subject to VBP is FY2012, which begins October 1, 2011. For further information on Press Ganey’s Value-Based Purchasing Calculator and for a live demonstration of the tool, please stop by Press Ganey’s booth at IHI (#310).

Press Ganey Associates, Inc.

Recognized as a leader in performance improvement for 25 years, Press Ganey partners with more than 10,000 health care organizations to create and sustain high performing organizations, and, ultimately, improve the overall health care experience. The company offers a comprehensive portfolio of solutions to help clients operate efficiently, improve quality, increase market share and optimize reimbursement. Press Ganey works with clients from across the continuum of care – hospitals, medical practices, home health agencies and other providers – including 50% of all U.S. hospitals. For more information, visit

CONTACT: Abby Szklarek, Public Relations Manager of Press Ganey Associates, Inc., +1-574-309-7961,

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