CMS: More hospitals will get value-based purchasing program payment bonuses in FY2020

hospital money
A majority of hospitals in CMS' value-based purchasing program will get a payment bonus for fiscal year 2020, the agency said. (Getty/PraewBlackWhile)

More hospitals will get payment bonuses under the Trump administration’s value-based purchasing program in federal fiscal year 2020 than a decline in payments, according to new figures.

The Centers for Medicare and Medicaid Services said on Tuesday that 55%—more than 1,500 hospitals out of approximately 2,700 facilities participating in the program—got a slightly higher Medicare payment under the program. Overall there will be $1.9 billion in incentive payments for hospitals in federal fiscal year 2020, which runs from Oct. 1 until Sept. 30, the same amount as fiscal 2019.

The average payment boost for a hospital under the program for fiscal year 2020 was 0.60% and the average decrease was 0.39%, according to CMS.

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“The highest performing hospital in FY 2020 will receive a net increase in payments of 2.93 percent, and the lowest-performing hospital will incur a net decrease in payments of [negative] 1.72 percent,” the agency said.

Federal fiscal 2019 also had 55% of hospitals getting a payment bonus.

The value-based purchasing program adjusts Medicare payments to participating hospitals based on a series of healthcare outcomes that include cost efficiency, patient safety, mortality data and healthcare-associated infections. 

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CMS said that, for the federal fiscal year 2020, almost 60% of hospitals will see a small change between a decline of 0.5% to an increase of 0.5% in their Medicare payments.

The announcement comes as CMS has sought to boost value-based care via the introduction of new regulations and payment models.

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