What is the purpose of value-based purchasing (VBP) in healthcare?

Value-based purchasing (VBP) is designed to align reimbursement with the quality of care delivered by healthcare providers. The core purpose of VBP is to assess and reward hospitals based on the quality of care they provide to patients rather than the quantity of services rendered. This approach aims to improve healthcare outcomes by incentivizing hospitals to enhance their care practices, focusing on patient satisfaction, clinical outcomes, and overall quality.

The significance of VBP lies in its potential to shift the focus from a volume-based model, where providers are compensated solely based on the number of services delivered, to a model that emphasizes value. In this way, hospitals that demonstrate high-quality care in terms of patient outcomes and experiences may receive higher reimbursement rates. Consequently, this creates an environment where hospitals are encouraged to innovate and implement best practices that lead to better patient care and improved health outcomes.