Hospital Inpatient Value-Based Purchasing Program Fact Sheet

The Affordable Care Act (ACA) requires the HHS Secretary to establish a hospital value-based purchasing (VBP) program under which value-based incentive payments are made in a fiscal year to hospitals meeting performance standards established for a performance period for that year. The value-based incentive payment amount is equal to the product of the base operating DRG payment amount for each discharge for the hospital for the fiscal year and the value-based incentive payment percentage for the hospital for the fiscal year. The total amount available for value-based incentive payments for all hospitals for a fiscal year is equal to the total amount of reduced payments for all hospitals for that fiscal year.

This fact sheet includes updates to the hospital inpatient value-based purchasing program included in the FY13 IPPS proposed rule, published in the May 11, 2012, Federal Register.