CMS posts final Hospital VBP Program adjustment factors for FY 2017

The Centers for Medicare & Medicaid Services today posted the final incentive payment adjustment factors for the fiscal year 2017 Hospital Value-Based Purchasing Program, which are being used to adjust base operating Medicare Severity Diagnosis-Related Group payments to eligible hospitals for discharges this year. As required by law, base operating MS-DRG payments to eligible inpatient prospective payment system hospitals are being reduced by 2% in FY 2017 to fund an estimated $1.8 billion in incentive payments for the VBP program. The actual VBP amount earned by each hospital depends on its Total Performance Score and incentive payment percentage. “After taking into account the statutorily mandated 2% withhold, the highest performing hospital in FY 2017 will receive a net increase in payments of slightly more than 4%, and the lowest performing hospital will incur a net reduction of 1.83%,” CMS said. To view the final FY 2017 adjustment factors, see Table 16B at www.cms.gov.