The Centers for Medicare and Medicaid Services’ Approach to Value-Based Purchasing

Authors

Bettina Berman, Thomas Jefferson UniversityFollow

Abstract

Although evidence suggests that both the quality and the affordability of health care can be improved¹, it is likely that such improvements will come at great cost. Healthcare expenditures in the United States (U.S.) are expected to rise precipitously - from $1.5 trillion in 2005 to over $4 trillion in 2016.² Medicare, the nation’s single largest health care purchaser, spent an estimated $425 billion on health services in 2007. With the projected growth in Medicare beneficiaries, the amount may surpass $800 billion by 2017, placing the government under significant pressure to control health care costs.³

This article is intended as a brief summary of the Centers for Medicare and Medicaid Services’ (CMS) experience and its prospective strategies for health care quality improvement, including relevant legislation and potential future trends for value-based programs under CMS.

Recommended Citation

Berman, Bettina (2008) "The Centers for Medicare and Medicaid Services’ Approach to Value-Based Purchasing," Value-Based Purchasing Newsletter: Vol. 2: Iss. 2, Article 2.
Available at: https://jdc.jefferson.edu/vbp/vol2/iss2/2