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Medicare's Value-Based Payment Program

The Value-Based Payment (VBP) program is intended to provide comparative performance information to physicians as part of Medicare’s efforts to improve the quality and efficiency of clinical care. This will be achieved by providing meaningful and actionable information to physicians so they can improve the care they furnish, and by moving toward physician reimbursement that rewards value rather than volume.

The program contains two primary components:

  • Quality and Resource Use Reports (QRURs, also known as Physician Feedback Reports)
  • Development and implementation of the value-based payment modifier (VBPM).

The ACA directs The Centers for Medicare & Medicaid Services (CMS) to provide information to physicians and medical practice groups about their resource use and quality of care provided to their Medicare patients, including quantification and comparisons of patterns of resource use/cost among physicians and medical practice groups.

The ACA mandates that CMS begin applying a value-based payment modifier under the physician fee schedule by 2015. In addition, this program must be implemented in a budget neutral manner.

More information on the Value-Based Payment Program:

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