Wednesday, September 14, 2016

House Committee Proposes New Value-Based Payment System

Drew Thies

The House Ways and Means Subcommittee on health held a hearing last week focusing on how the post-acute space could move more toward value-based payments (VBP). The hearing was held ahead of the introduction of changes to a bill from Ways and Means Chairman Kevin Brady (R-Texas) that seeks to create one value-based system for all post-acute payments.

The bill proposes that five percent of Medicare payments to post-acute provided be withheld and redistributed based on a set of cost-savings and geographic criteria with a functional measure phased in after two years.

The American Health Care Association is supportive of the move toward more value-based systems but is not supportive of the particular criteria laid out in this bill. AHCA hopes to work with the committee and Chairman Brady in order to make productive changes to the legislation.

AHCA believes that any value-based system should take no more than two percent from providers, the rate set in both the current skilled nursing and hospital VBP systems.

Skilled nursing facilities just began a value-based payment program tailored specifically for the setting based on rehospitalization measures. The program was passed as part of the Protecting Access to Medicare Act of 2014.

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