The health reform law will shift from making payments of hospitals for reporting quality indicators to reducing payments to hospitals with the highest rates of medical errors and infections, according to a report by CNN Money.
Beginning in 2012, payments to hospitals will be based on their scores rather than on simply reporting results.
In 2015, HHS will start reporting each hospital's scores and CMS will reduce its payments by 1 percent to hospitals with the highest rate of medical errors and infections.
The government will also no longer pay hospitals for treatment when a Medicaid patient is harmed during a hospital stay.
Read CNN Money's report on quality indicators.