Hospital Characteristics and their Impact on Value-Based Purchasing

As part of the inpatient Hospital Value-Based Purchasing (HVBP) program, CMS implemented a new Total Performance Score (TPS) methodology to assess and financially reward hospitals for providing affordable, quality health care. In FY 2015, the Efficiency domain was added to the measure of the cost of care by individual hospitals. We used the Diffusion of Innovation (DOI) Theory as a conceptual model for our study. We also used data from the 2015 American Hospital Association (AHA) database and the 2015 Hospital Compare database. Multivariate regression analysis was used to examine the relationship between TPS, hospital characteristics and the new TPS methodology using SPSS, version 19. We found that for-profit, non-teaching, smaller and rural hospitals had significantly higher overall TPS, Process of Care, Patient Experience and Efficiency scores. The results suggest that hospital characteristics may have an important impact on value-based purchasing pay-for-performance results and their associated funding.