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Hospital Value-Based Purchasing

The Official Website for the Medicare Hospital Value-based Purchasing Program

This website will be CMS' official source of information about the Hospital Value-based Purchasing (HVBP) Program for hospitals, clinicians, and other stakeholders who share CMS' commitment to transforming the quality of hospital care by realigning hospitals' financial incentives to do so. 

Check back often for more resources to help your organization launch this ground-breaking new program.

To learn more about what the HVBP Program is, and how it can impact you, please read the links within and outside CMS, below.


CMS considers future measures for the Efficiency and Cost Reduction domain in the FY 2015 IPPS/LTCH Proposed Rule

CMS has posted the FY2015 IPPS/LTCH Proposed Rule. In it, CMS discusses six potential future measures to supplement the Medicare Spending per Beneficiary (MSPB) measure in the Efficiency domain of the Total Performance Score (TPS).  See the “Downloads” section below for the “Hospital-Based Episode Supplemental Documentation” file, which provides technical details on these potential future measures.

Members Named to HVBP Monitoring and Evaluation Strategies Technical Expert Panel (01-15-13)

Fifteen healthcare professionals from across the country have been named to participate in the Hospital Value-based Program (HVBP) Monitoring and Evaluation Strategies Technical Expert Panel. For more details, see Downloads below.

Payment Adjustments

CMS Publishes HVBP-based Incentive Payment Adjustment Factors for FY 2014 (11-14-13)

CMS has continued implementation of the Hospital Value-Based Purchasing (VBP) Program in the FY 2014 Inpatient Prospective Payment System (IPPS) rule (see 78 FR 50678).  In that final rule, CMS relied on the finalized methodology to calculate the value-based incentive payment adjustment factor and the portion of Medicare’s IPPS payments that will be subject to the adjustment factor, which was adopted in the FY 2013 IPPS rule (see 77 FR 53573-76).  In accordance with the Hospital VBP statute, CMS also updated the applicable percent for the FY 2014 Program, which is 1.25 percent.  For more information on these payment-related policies, please refer to the FY 2014 IPPS Final Rule and FY 2013 IPPS Final Rule in the “Related Links” section below.

The value-based incentive payment adjustment factors for the FY 2014 payment adjustments under the Hospital VBP Program may be found in the “Downloads” section below.  Tip: The list of payment adjustment factors is organized by CMS Certification Number (CCN). If you are unsure of your hospital's CCN, please visit the CCN listing at

Regulations and Notices

CMS Finalizes Program Provisions for FYs 2014 and 2016-19 of HVBP (8-1-13)

On August 1, 2013, CMS announced the display of the FY 2014 IPPS Final Rule, which included a number of policies related to the Hospital VBP Program.  Specifically, we finalized payment and operational details for FY 2014, the second year in which value-based incentives are available under the program.  We also finalized new policies for FY 2016, including (1) new measures, (2) performance periods, (3) performance standards, and (4) domain weighting.  

The final rule also included policies related to certain measures for FY 2017 through FY 2019, including performance periods, and performance standards for those program years, as well as a new domain structure for FY 2017 based on the National Quality Strategy and its priorities of better patient outcomes, quality, safety, and lower cost for Medicare payments.

The final rule was published in the Federal Register on August 19, 2013.