News: Safety net hospitals penalized by VBP initiatives, study shows

Safety net hospitals—those with a Medicare Disproportionate Share patient percentage in the highest quartile—have a higher risk of reimbursement reductions associated with various Value-Based Purchasing (VBP) initiatives such as the Hospital Readmission Reduction Program (HRRP), according to a study of 242 California hospitals in Health Affairs.

While the 60 safety net hospitals had 30-day mortality rates for heart attack, heart failure, and pneumonia that were slightly lower than the other PPS hospitals when averaged over three years, they were likely to score lower than the other hospitals on the VBP and HRRP programs, AHA’s NewsNow reported. They also were less likely to meet Medicare’s EHR meaningful use criteria, required to avoid a payment penalty beginning Oct. 1.