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The value of value-based purchasing
Alan Channing1, Susan D DeVore
1Sinai Health System, Chicago, USA. alan.channing@sinai.org
Summary
The Hospital Quality Incentive Demonstration (HQID) project led to a 17.2% improvement in hospital quality scores. Replicating these results could save $4.5 billion and 70,000 lives annually.
Area of Science:
- Healthcare quality improvement
- Health services research
- Public health policy
Background:
- The Centers for Medicare & Medicaid Improvement (CMS) and Premier, Inc. initiated the Hospital Quality Incentive Demonstration (HQID) project.
- The project aimed to incentivize hospitals to improve quality of care.
Purpose of the Study:
- To evaluate the impact of the HQID project on hospital quality scores.
- To estimate the potential national impact of widespread adoption of HQID project's quality improvement strategies.
Main Methods:
- Analysis of composite quality scores from hospitals participating in the HQID project over four years.
- Extrapolation of observed improvements to estimate potential national savings in lives and healthcare costs.
Main Results:
- HQID hospitals demonstrated a 17.2% improvement in composite quality scores across five clinical areas.
- Potential annual savings estimated at $4.5 billion and 70,000 lives if all hospitals achieve similar performance.
Conclusions:
- The HQID project successfully improved hospital quality performance.
- Significant national benefits, including cost savings and lives saved, are achievable through widespread implementation of quality improvement initiatives.
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