Medicare's Hospital Value-Based Purchasing Program Overvalues Quality

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Date: March 5, 2020
Time: 12:30 p.m. - 2:00 p.m.
Location: Faculty/Administration #4339 | Map
656 W. Kirby
Detroit, MI 48202
Category: Seminar

Edward Norton

School of Public Health

University of Michigan


Medicare's Hospital Value-Based Purchasing Program Overvalues Quality

Medicare’s Hospital Value-Based Purchasing Program (HVBP) is the first national pay-for-performance program to combine measures of quality of care with a measure of episode spending. To earn points in HVBP, a hospital can either lower mortality or reduce spending; we estimate the resulting tradeoff between the two measures. Analyzing data on quality and earned points from 2,814 hospitals we quantified the tradeoffs between spending and mortality in terms of QALYs. We found HVBP overvalues improvements in quality of care relative to spending reductions. We propose two possible policy adjustments that could improve incentives for hospitals to deliver high-value care.


Shooshan Danagoulian




Academic staff, Alumni, Current students, Faculty, Prospective students, Staff