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Welcome to the HRP Press Room


Date:                 July 3, 2008

Contact:            Amanda Ceccato

Phone:              (732) 292-1100


Know What's Expected For Reimbursement With Implementation of Value-Based Purchasing With Audio Conference CD-ROM

MANASQUAN, N.J.-- Value-based purchasing (VBP) will cause a wave of change in how hospitals will be reimbursed in 2009 and understanding the changes is critical to assure timely payment. Experts from both sides of legislation, payer and payee, discussed details of the new payment system during a recent audio conference, now available on CD-ROM.

“Medicare Reimbursements: Details and Insight into CMS’ Hospital Value-Based Purchasing Program and the Coming New Plan Changes for FY 2009,” hosted by Healthcare Reimbursement Monitor, a monthly national newsletter delivering prime news and studies on all payment issues within the healthcare system, is now offered on CD-ROM with accompanying power point presentations and agenda.

The CD-ROM showcases Dr. Tom Valuck, medical officer and senior adviser for the Center for Medicare and Medicaid Services (CMS) and Beth Feldpush, a senior associate director for policy for the American Hospital Association, understanding and concerns for the proposed VBP model.

“The idea is to both improve quality while at the same time avoiding unnecessary costs,” said Valuck.

Meanwhile, AHA’s Feldpush said, “We think that the goal of any program should be to improve care, improve hospitals’ performance. Such a program shouldn’t be used just to cut costs in the healthcare system.”

The proposed rule will evaluate hospitals based on their reported performance of more than 10 quality measures, said Valuk. The Medicare funding and incentive payments are prorated based on the quality of their care.

The CMS measuring system will rate hospitals on each of the quality measures. The scores will be aggregated into an overall performance score and then converted into payment. The higher a hospital’s performance score, the higher percent of their diagnosis-related group (DRG) payment will be awarded to them.

“CMS’s plan suggests withholding 2 percent to 5 percent of the base DRG payment rates,” said Feldpush. “We think that this is high for an untested system and would suggest starting out with a smaller amount of money.”

To learn more about VBP through the CD-ROM and conference materials, please visit

For more information on Healthcare Reimbursement Monitor, please visit

Address: Healthcare Reimbursement Monitor, Health Resources Publishing, 1913 Atlantic Ave., Suite 200, Manasquan, NJ 08736; (732) 292-1100,