Coalition: 42% of Medicare FFS payments were value-oriented in 2013

An estimated 42% of Medicare fee-for-service payments were value-oriented in 2013, according to a scorecard released yesterday by Catalyst for Payment Reform. About one-third of the payments were related to pay-for-performance programs, 12% to shared savings programs and 2% to shared-risk programs. The coalition of large employers and other health care purchasers defines value-oriented payment as “payment methods that reflect or are designed to improve the quality and safety of care along with payment methods designed to spur efficiency and reduce unnecessary spending.” For calendar year 2013, it determined there were primarily six active programs or demonstrations with payment methods meeting that definition: the Hospital Value-Based Purchasing Program; End Stage Renal Disease Quality Incentive Program; Medicare Shared Savings Program for accountable care organizations; Medicare Pioneer ACO Program; Electronic Health Record Incentive Program for eligible hospitals; and EHR Incentive Program for eligible professionals. In January, the Department of Health and Human Services announced goals to tie 30% of Medicare FFS payments to alternative payment models and 85% to quality or value by 2016.