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Value-Based Purchasing Design And Effect: A Systematic Review And Analysis.

Abhinav Pandey¹, Diana Eastman², Heather Hsu³

¹Abhinav Pandey (abp4003@med.cornell.edu), Cornell University, New York, New York.

Health Affairs (Project Hope)

|June 5, 2023

Summary

This summary is machine-generated.

Value-based purchasing (VBP) programs reward providers for better healthcare quality and lower costs. Higher-intensity VBP contracts are more effective at improving quality and reducing spending than lower-intensity ones.

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Area of Science:

Health Services Research
Healthcare Economics
Quality Improvement

Background:

Value-based purchasing (VBP) programs have been adopted by major US payers (commercial, Medicare, Medicaid) over the last 20 years.
These programs aim to incentivize healthcare providers to enhance quality of care and control healthcare expenditures.
Understanding the features and intensity of VBP programs is crucial for assessing their impact on outcomes.

Approach:

A systematic review was conducted to qualitatively analyze the financial and nonfinancial components of VBP programs.
The study examined how different combinations of VBP features create varying levels of program intensity.
The relationship between VBP program intensity and desired quality and spending outcomes was investigated.

Key Points:

Higher-intensity VBP programs demonstrate a stronger association with improved quality processes.
Increased program intensity correlates with better utilization measures and significant reductions in healthcare spending.
Lower-intensity programs, while potentially increasing voluntary participation, yield less favorable outcomes.

Conclusions:

The intensity of value-based purchasing programs directly influences their effectiveness in achieving quality and cost-saving goals.
Payers and providers should consider the trade-offs between program intensity and participation when designing VBP contracts.
Optimizing VBP program design is essential for maximizing improvements in healthcare quality and efficiency.