Medicare's value-based purchasing system has been discussed for some time now. Providers soon will be paid federal reimbursement money for caring for Medicare beneficiaries based on the quality of that care, rather than by the procedures used.
This week, the Centers for Medicare & Medicaid Services announced that value-based purchasing will be implemented and the new initiative will support a key program to reduce medical errors and patient harm. This initiative, called "Partnership for Patients: Better Healthcare, Better Cost", aims to reduce hospital-acquired infections by 40 percent by 2013.
A synopsis of the value-based purchasing system can be found here.
Medicare payment and quality system to change