Maryland’s Experience of Merging Quality with Reimbursement

Date: May 25, 2013||   0  Comments

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Maryland’s Experience of Merging Quality with Reimbursement
Dianne Feeney, Associate Director Quality Initiative, Maryland Health Services Cost Review Commission
Sule Calikoglu, Associate Director Performance Measurement, Maryland Health Services Cost Review Commission

Pay for performance (P4P) and value-based purchasing (VBP) are interchangeable terms for payment systems that link providers’ reimbursement to their performance on selected quality of care measures, and systems that use financial incentives to encourage providers to meet defined quality, efficiency, or other targets (Agency of Healthcare Research and Quality 2008).The Health Services Cost Review Commission analyzes multiple data sets to measure hospital performance on a comprehensive set of quality-related measures–process of care, complication and readmission rates–the results of which are used as the basis for financial incentives to dramatically improve the overall quality of Maryland hospital care.

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