Two key pay-for-performance (P4P) programs created by the Patient Protection and Affordable Care Act of 2010 (PPACA)—the Hospital Value-Based Purchasing Program (VBP Program) and Hospital Readmissions Reduction Program (HRRP)—went into effect October 1, 2012. The VBP Program rewards hospitals for achieving certain levels of performance against specific performance measures, and the HRRP penalizes hospitals with higher than expected readmissions for patients with certain conditions.
Together, these programs mark the beginning of Medicare P4P for inpatient hospital services.
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