Two of the major pay-for-performance programs are the Hospital Value-Based Purchasing program and the Hospital Readmissions Reduction program. According to CMS’ proposed rule for the inpatient prospective payment system in fiscal year 2014, hospitals will lose up to 2 percent of Medicare payments for excessive readmissions. Meanwhile, hospitals will have 1.25 percent of their Medicare payments withheld for value-based purchasing, resulting in $1.1 billion in redistributed incentive pay.
The Advisory Board Company recently made an infographic outlining how all of the current pay-for-performance programs will impact hospital and health system revenue going into FY 2014. Each hospital is represented by a colored dot, which represent varying degrees of estimated revenue loss or gain:
