Spencer Hospital Continues to Exceed State & National Averages for Value
on Friday, September 1, 2017
When seeking services, consumers look for a good value which can be defined as receiving a quality product at a below average cost. For the fifth consecutive year, the federal government has recognized Spencer Hospital as a cost efficient healthcare provider that’s achieving quality outcomes exceeding both state and national averages.
Six years ago, the Centers for Medicare and Medicaid Services initiated a quality initiative, called the Value Based Purchasing Program (VBP), which assesses hospital performance across a range of clinical, patient safety, patient satisfaction and cost efficiency measures. VBP represents an increasing focus by healthcare payers to slowly transition reimbursement models to be based on care outcomes and cost rather than the number of visits, tests or procedures provided.
“The evolving methodology utilized by the Medicare program is to reimburse healthcare providers based on overall value rather than volume,” explained Spencer Hospital President Bill Bumgarner. “This means quality outcomes and improvement efforts are carefully measured and rewarded. Hospitals that offer quality care in a cost efficient manner can earn additional reimbursement for services provided.”
In 2018, Spencer Hospital will receive an additional 0.74 percent in payment for a specific range of Medicare services. To fund the VBP program nationally, all participating hospitals receive a two percent across-the-board reduction in their Medicare reimbursement. Hospitals have with the opportunity to earn the 2% back – partially or in full – or even a little extra, such as Spencer Hospital has accomplished in each of the last five years.
“While the additional dollars currently don’t represent a significant increase in payments, it is a strong testament to the high quality of care being provided by local physicians and hospital employees,” said Bumgarner. “We greatly appreciate the commitment of our outstanding medical staff and dedicated healthcare team for joining together to consistently achieve quality outcomes for our patients.”