Source: Health Policy Institute of Ohio
The Centers for Medicare and Medicaid Services (CMS) announced March 3 it reached its goal of tying 30% of Medicare payments to value, instead of volume 10 months earlier than anticipated (Source: “Obama Administration Beats Goal on Medicare Payment Reform, The Hill, March 3, 2016).
“Within Medicare, $117 billion is now spent on value-based payments — up from ‘virtually zero’ dollars in 2011,” Patrick Conway, MD, chief medical officer for CMS, said.
Instead of simply paying physicians for services, CMS now encourages public- and private-sector health care payers to base their payments on quality measures, such as patient outcome and access to care.
The 30% commitment, which was laid out last year, marks the most dramatic shift in Medicare payments in the program’s 50-year history. It’s also the first time the program has set a target on value-based payments.
The administration is now eying its next goal—tying 50% of payments to value by 2018.