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First look at Medicare quality incentive program finds little benefit

Kaiser Health News, August 7, 2014

One of Medicare's attempts to improve medical quality –by rewarding or penalizing hospitals — did not lead to improvements in the first nine months of the program, a study has found. The quality program, known as Hospital Value-Based Purchasing, is a pillar of the federal health law's campaign to use the government's financial muscle to improve patient care. Since late 2012, Medicare has been giving small increases or decreases in payments to nearly 3,000 hospitals based on how patients rated their experiences and how faithfully hospitals followed a dozen basic standards of care, such as taking blood cultures of pneumonia patients before administering antibiotics.