November 30, 2018

Value-Based Purchasing Explained by the Health Care Authority

During Greater Columbia Accountable Community of Health’s November Leadership Council meeting, the Health Care Authority’s (HCA) Senior Health Policy Analyst, J.D. Fischer presented “The What, Why and How of Value-Based Purchasing.” Value-based purchasing (VBP) is a payment model that offers financial incentives to physicians, hospitals and other healthcare providers for meeting certain performance measures. The purpose of VBP is for providers to assume more accountability for the quality and cost of care, incentivizing higher-value care.

During the presentation, J.D. presented examples of a transformed, value-based system with the Health Care Authority’s goal of a healthier Washington in mind. This included integrated systems that pay for and deliver whole person care, coordinated care and transitions, engaged and activated members who are connected to the care they need and empowered to take a greater role in their health, and standardized performance measurements.

The Health Care Authority plans to drive the value-based purchasing model by implementing risk sharing at the provider level, quality measures from Washington Statewide Common Measure Set, the Quality Improvement Model (rewarding improvement and attainment), and care transformation strategies based on the Bree Collaborative recommendations.

J.D. also stated, “one size does not fit all.” The Heath Care Authority recognizes that providers are uniquely situated and empowered to maximize their strengths. J.D. also noted that arrangements will vary depending on provider’s strengths and capabilities, and is possible to change over time. For more information on value-based purchasing, visit https://www.hca.wa.gov/about-hca/value-based-purchasing.