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Advising the Congress on Medicare issues
MedPAC > Recommendations > Hospital inpatient and outpatient services

Hospital inpatient and outpatient services

March 15, 2019

The Congress should:

  • Replace Medicare’s current hospital quality programs with a new hospital value incentive program (HVIP) that:
  • includes a small set of population-based outcome, patient experience, and value measures;
  • scores all hospitals based on the same absolute and prospectively set performance targets;
  • accounts for differences in patients’ social risk factors by distributing payment adjustments through peer grouping, and
  • For 2020, update the 2019 Medicare base payment rates for acute care hospitals by 2 percent. The difference between the update recommendation and the amount specified in current law should be used to increase payments in a new HVIP.

Topics: Hospital and Quality.