All acute-care hospital in Louisville, Kentucky and those in Floyd and Clark counties in Indiana will see reduced Medicare payments during the federal fiscal 2019.
The reductions are happening because the hospitals did not meet the performance standards established by the Centers for Medicare & Medicaid Services’ (CMS) Hospital Value-Based Purchasing Program (VBP).
The VBP Program was implemented in 2012. It is designed to make the quality of care better for hospital patients and make hospital stays a better experience for patients. This program reduces all Medicare payments to participating hospitals by two percent and that money then gets redistributed to hospitals depending on their performance in a number of areas:
- Mortality and complications
- Healthcare-associated infections
- Patient safety
- Patient experience
- Efficiency and cost reduction