CMS Proposes Rule to Implement Medicare Inpatient Hospital Value-Based Purchasing Program

On January 13, 2011, the Centers for Medicare and Medicaid Services (“CMS”) published a proposed rule (the “Rule”) for implementing the Medicare hospital inpatient value- based purchasing (“VBP”) program established under the Patient Protection and Affordable Care Act of 2010, commonly known as “Health Care Reform.” The Rule creates a pay-for-performance policy within the Inpatient Prospective Payment System (“IPPS”) that provides incentive payments to hospitals able to demonstrate achievement or improvement on specific quality-control measures. Through the VBP program, CMS seeks to drive improvements in clinical quality, patient-centered care, and efficiency across the health care system.