The Relationship between Value-Based Purchasing

The hospital value-based purchasing programs are aimed at rewarding the hospitals with incentive payments depending on the quality of the care they deliver to the patients with Medicare. The payments to the hospitals are adjusted under the IPPS based on the quality of care that is delivered ( Figueroa et al., 2016). There is, therefore, a relationship between the care provided by the nurses and the reimbursement under the value-based purchasing program. The hospitals value-based purchasing can therefore be measured to identify how the hospital is doing regardingthe quality of the services provided. It can be measured using outcomes such as mortality and complications, the patients’ process, patients’ safety, efficiency,and cost reduction as well as associated healthcare infections ( Figueroa et al., 2016). The hospitals earn two scores on each of the measure. One score is awarded for improvement,and the other is for achievement made regarding the quality of the care. The Medicare payment system is then rewarded based on how well the hospital performed compared to all others or the extent of improvement made compared to previous period performance. The quality of the care that nurses provide therefore has a direct relationship with the reimbursement received under the Medicare payment system. 

There is a business case for improving the nursing staffing in the healthcare. When the hospital has a good number of qualified nurses by the bedside, the quality of the care services provided to the patients will increase. Improved staffing ensures that there is increased patients safety, increased efficiency, reduced healthcare-associated infections,and mortality complications. As a result, the hospital will have a higher score under the VBP program for both improvement and achievement. As a result, the reimbursement under the VBP program will increase resulting in more profits. Better staffing results to improved quality of care which then leads to higher ranking under the VBP which leads to more incentives being given to the hospital. 

Reference 

Figueroa, J. F., Tsugawa, Y., Zheng, J., Orav, E. J., & Jha, A. K. (2016). Association between the Value-Based Purchasing pay for performance program and patient mortality in US hospitals: an observational study.  BMJ ,  353 , i2214.