FFY 2024 IPPS Final Rule: Value-Based Purchasing (VBP) Incentives
CMS re-implements the VPB program in FFY 2024 (the VBP was suppressed in FFY 2023 due to the impact of COVID-19) whereby providers are subject to a 2 percent reduction in payments to contribute to the VBP payment pool (estimated at $1.7 billion). A hospital is then eligible to receive a value-based incentive payment based on the hospital’s Total Performance Score (TPS) from performance in specific measures from the prior two years. CMS published proxy VBP adjustment factors3 in Table 16A of the Final Rule (available here). CMS plans to finalize the VBP factors with more current data4 in the impending Table 16B by this fall.
For more information, please contact Robert Howey at robert.howey@toyonassociates.com.
3 VBP proxy factors were calculated using the December 2022 update to the FY 2022 MedPAR file.
4 VBP updates will use the March 2023 update to the FY 2022 MedPAR file.