The cost of quality: how VBP scores correlate with hospital costs

A study sought to correlate projected total performance scores (TPSs) for hospitals under the Medicare value-based purchasing (VBP) program with routine costs as reported by each hospital for the corresponding measurement periods. The study focused on routine service costs and common departmental costs because they are generally shared among all hospitals. The study's findings suggest that these costs tend to be higher among hospitals that achieve higher levels of quality as measured by VBP scores.