Under the VBP Program, CMS will make value-based incentive payments to acute care hospitals, based either on how well the hospitals perform on certain quality measures or how much the hospitals' performance improves on certain quality measures from their performance during a baseline period. The higher a hospital's performance or improvement during the performance period for a fiscal year, the higher the hospital's value-based incentive payment for the fiscal year would be.
The VBP program applies beginning in FY 2013 to payments for discharges occurring on or after October 1, 2012.
For more on the VBP program,click here to go to the CMS website.