VALUE BASED PURCHASING

Fueled by rising health care costs and increased public attention to quality, pressure is mounting for reform of current payment policy to encourage quality improvement, transparency, and efficiency.  Some are considering comparative effectiveness research and evidence-based medicine to assist providers in evaluating the best care for patients. Value-based purchasing (VBP), payment for health care services based on getting the highest level of quality at the best cost, is viewed as yet another important tool for improving health quality.  These policies have bipartisan support in Congress and the backing of President Bush. Administration initiatives, demonstration projects, private sector programs, and legislation are being advanced in an attempt to reformulate payment systems to reward quality. Together, these changes can facilitate a more efficient and higher quality health system.