Health may be priceless, but healthcare is not. With medical costs on the rise, insurance companies and government payers are increasingly asking pharmaceutical companies and device manufacturers to prove—and quantify—the value of their therapies.
The Push for Value-Based Purchasing
Under the Affordable Care Act, The Centers for Medicare & Medicaid Services (CMS) instituted the Hospital Value-Based Purchasing (VPB) Program. This model provides cash incentives for hospitals that meet or improve certain Healthcare Quality Indicators (QIs). This is part of a larger plan to shift more Medicare and Medicaid payments to value-based models.
