Value Based Purchasing VBP

Running head: VALUE BASED PURCHASING 1

Value Based Purchasing (VBP)

Name:

Date:

VALUE BASED PURCHASING 2

Value Based Purchasing in APB Healthcare Facility

Current status of VBP in the Organization

Following the changes in the Medicaid and Medicare programs in the patient protection

and care act of 2010, more and more healthcare facilities are adopting the value based purchasing

(VBP). VBP is a group of payment systems that are based on performance, linking better-value

financial incentives that facilitate improvements in quality and reduction in overall costs (Center

for Medicare and Medicaid Services, 2015). ABP healthcare organization has VBP in virtually

all departments, accredited to the increased benefits reaped. The main goal of VBP is to improve

quality of services, while at the same time cutting down on significant hospital spending (Guy,

2017). One of the main goals of APB organization is to improve quality of patient care in all

departments of the organization and facilitate fast patient recovery. Hence, the organization has

implemented VBP programs that have enabled it to improve quality.

APB has implemented VBP through creation of strategy for tracking performance of the

programs within a specified time frame. This is by understanding all the key processes of the

program in every reimbursement year. All the clinical processes used to measure quality of

performance have been identified using the Plan Do Study Act (PDSA) strategy. In addition, all

the care delivery processes have been standardized by identifying all processes that reduce costs

and the rate of mortality. Thirdly, all the investments of the organization have been leveraged

with the Electronic Health Recording (EHR) system so as to create the best possible outcomes

from VBP (Gilman et al, 2014). EHR technology has enabled the hospital to improve the

effectiveness of operations and improve the quality of care offered to all the patients. In addition

to EHR, the organization is investing in other technologies that monitor patients and identifying

VALUE BASED PURCHASING 3

other opportunities for improvement. Healthcare technologies help to reduce the tasks and

responsibilities that are performed manually under VBP.

Departments

Emergency Department

The Emergency Department (ED) is one of the most significant in the organization, and

has greatly benefited from the application of VBP care. Use of VBP in ED positively impacts the

quality of inpatient care offered. The ED caters for patients who need immediate medical

attention. For instance, car accident victims with crucial injuries are immediately taken to the

ED, regardless of whether they are covered under Medicaid and Medicare programs. The goal is

to first attend to the patients, and worry about the finances later. The goals of emergency

department include immediate patient attention and care, delivery of quality patient care, little or

no medical and medication errors, fast and effective recovery process, administering of the right

medication, free communication with the nurses, and few mortality rates.

Surgical Care Department

Implementing VBP in surgical care helps to improve the experiences of patients and

improve the outcome if care after they come out of surgery. The critical nature of surgical care

requires maximum patient care through technically skilled and qualified surgeons. The

effectiveness of the service care providers in the department combined with the experiences of

the patients determines the recovery process of the patients and quality healing process. To

achieve both results, integrating VBP is crucial as it helps the doctors to not care about the costs

of the procedures, but for the outcome of the care delivery process (Figueroa et al, 2016) . The

various goals of surgical care department that call for implementation of VBP include enhancing

quality patient experiences, reduced morality rates, application of the best surgical skills to take

VALUE BASED PURCHASING 4

care of the patients, facilitation of effective patient recovery, using efficient technological

equipment, and reduced costs of the operations.

Intensive Care Unit (ICU)

Due to the variation of care and expended costs incurred in treating critically ill patients,

the ICU department has implemented VBP in order to improve value of care delivery. Although

the ICU accounts for only 9% of all patient beds, the costs and value of care incurred accounts to

15% of all expenses by the hospital (Dogra & Dorman, 2016). Patients in the ICU are the most

fragile, and require immediate care from the doctors and other clinicians. They usually have

complex diseases that require surgery and complex procedures, and this care entails

collaboration among staff from different departments. Due to the fragile nature of the patients

and need for immediate medical care, the department has zero room for medical or medication

errors. The best practices of patient care are required in the department so as to tend to all the

patient needs. Using VBP in ICU helps to improve the overall quality of care offered to the

patients.

Emergency Department

The ED is significant because it deals with patients with need immediate medical attention, with all

type injuries and other complexities. The nature of the department calls for quality service delivery

of the patients. VBD allows service care providers to cater for each individual patient carefully

without hurrying to finish up.

Goal:

To reduce mortality rates by 50% within the next three years.

To facilitate immediate patient attention and provide maximum patient acre to each patient

Attaining quality outcomes in patient care over

the next 3 years:

 Immediate patient care

 Use of the integrated technologies to

carry out complex procedures

 Partnerships and collaborations among

the various departments

 Awareness to reduce medication and

diagnostic errors

Attaining quality outcomes in reimbursement

over the next 3 years

 Use of EHR systems

 Management of patient population

 Managing high risk patients

 Frequent patient census

VALUE BASED PURCHASING 5

Key points:

 Improved communication between the staff across all departments.

 Conducing regular patient consensus to separate high risk patients from the rest.

Marketing techniques:

 Facilitating interdepartmental communication

 Transparency of information

Coordinating informal events

 Frequent communication

 Collaboration

Coordinating educational events

 Training and development programs

 Creation of awareness

Surgical Care Department

Implementing VBP in surgical care helps to improve the experiences of patients and improve the

outcome if care after they come out of surgery. The critical nature of surgical care requires

maximum patient care through technically skilled and qualified surgeons. The effectiveness of the

service care providers in the department combined with the experiences of the patients determines

the recovery process of the patients and quality healing process.

Goal:

To enhance quality patient experiences

Application of best surgical techniques

Effective patient recovery process

Attaining quality outcomes in patient care over

the next 3 years:

 Improved nursing communication

 Use of the latest technologies to deliver

care

 Partnerships and collaborations among

the various departments

 Medicine communication

Attaining quality outcomes in reimbursement

over the next 3 years

 Use of EHR systems

 Management of patient population

 Managing high risk patients

 Frequent patient census

Key points:

 Improved communication between the staff across all departments.

 Transparency of information

Marketing techniques

 Transparency of information

 Collaboration and coordination

Coordinating informal events

 Frequent communication

Coordinating educational events

 Training and development

 Creation of awareness

 Training on how to use technologies

VALUE BASED PURCHASING 6

Intensive Care Unit

The ICU department has implemented VBP in order to improve value of care delivery. The costs

and value of care incurred accounts to 15% of all expenses by the hospital. Patients in the ICU are

the most fragile, and require immediate care from the doctors and other clinicians. They usually

have complex diseases that require surgery and complex procedures, and this care entails

collaboration among staff from different departments.

Goal:

To reduce mortality rates by 50% within the next 3 years.

To facilitate quality patient experiences

To facilitate faster recovery process

Attaining quality outcomes in patient care over

the next 3 years:

 Improved nursing communication

 Use of the latest technologies to deliver

care

 Partnerships and collaborations among

the various departments

 Medicine communication

Attaining quality outcomes in reimbursement

over the next 3 years

 Use of EHR systems

 Use of PHR

 Management of patient population

 Managing high risk patients

 Payments for entire episode of care

Key points:

 Improved communication between the staff across all departments.

 Transparency of information

 Conducing regular patient consensus to separate high risk patients from the rest.

Marketing Techniques:

Creation of awareness

Improved communication and collaboration

Improved training and education of the staff

Coordinating informal events

Frequent communication with all the staff

Coordinating educational events

 Training and development programs

 Education on how to use EHR, PHR, and

other technologies in reimbursement

Ethical Clinical Practices

To successfully implement VBP in the departments of the organization, there is need to

follow various ethical principles and guidelines that all healthcare service providers must adhere

to. The principle of beneficence means doing well at all times (Guy, 2017). When taking care of

the patients, the intentions of the health care service providers should be to do well to them by all

costs. Their goal should be to facilitate quality patient care. The principle of non-maleficence

VALUE BASED PURCHASING 7

states that no harm should be inflicted upon the patient. For instance, avoidance of medical and

medication errors should be a priority. The principle of autonomy calls for respect of

confidentiality of information of the patients. The principle of justice calls for equality and

fairness when treating all the patients.

Ethical Business Practices

Some of the business ethics in healthcare include confidentiality of information,

communication with the patients, and right to medical care. The caregivers must respect the

privacy of patients, and should not disclose information without consent. Business ethics also

calls for communication with the patients about any procedures and treatments. The rights of the

patients to refuse any form of medication should also be respected.

VBP Timeline

Time Increments

Surgical Department

ICU

0-9 months

Introduction of VBP

into the organization

Creation of awareness

Communication with

the staff

10-18 months

Education and

training of the staff

Interdepartmental

coordination

Implementation

Management of

patient population

Managing high risk

patients

Frequent patient

census

Training and

education of all the

staff

19-27 months

Transparency of

information

Partnerships with

other organizations

Implementation

Coordination and

communication

Partnerships with the

community

28-36 months

Review and

evaluation of VBP

programs

Review and

monitoring

Review and

monitoring

Correction of

deviations

VALUE BASED PURCHASING 8

Executive Summary

As a member of the Medicare and Medicaid Quality Improvement Programs, APB has

benefited from introducing VBP programs. The importance of implementing VBP measures in

healthcare facilities cannot be overstated. One of the main goals of APB organization is to be the

best hospital in the region in terms of quality of services. Through the implementation of VBP,

the organization is one step away from attaining all its quality objectives. It has greatly benefited

from the payment mechanism, accredited to its three major components. These include nursing

communication, medicine communication, and cleanliness and quietness of the organization.

In our organization, nursing communication is one of the most significant components of

VBP, as it greatly facilitates delivery of quality patient care. Communication with the patients

results into improved pain management, reduced medication and medical errors, improved

responsiveness among all the staff of the hospital, among others. Nurses play a crucial role in

quality service delivery and using VBP to improve communication between nurses and patients

leads to improvement in all dimensions of the organization (Gilman et al, 2015). Nurses have the

most interactions with the patients as they tend to them on a regular basis. One way

communication is being facilitated is through patient education, whereby they are advised to

open up and air their views on the extent of service delivery. Increasing patient awareness helps

to improve interactions with the nurses, who cater for them according to their distinct needs.

Medicine communication is important in reducing medical and medication errors.

Integrating VBP in the organization has greatly improved hospital communication regarding

medical issues. Prior to implementation of VBP, many hospital staff did not bother explaining to

the patient what the medicine was for. With VBP, medicine communication is enhanced in all

levels. Firstly, the staff communicates with the patients in detail about the purpose of the

VALUE BASED PURCHASING 9

medicine. They clearly discuss with the patients about when and how to take the medicine and

how to carefully store the medicine to avoid errors. Secondly, they communicate all the possible

side effects of the drugs. They tell the patients about how the drugs will affect them, and how to

prevent negative side effects. Thirdly, medicine communication allows patients to discuss any

concerns they have about the medicines with the doctors (Guy, 2017). They freely air potential

allergies and reactions to particular medicine, and allow the staff to give medicine based on

distinct individual needs. Communication reduces the likelihood of errors to great extent as the

hospital staff become thorough when prescribing medicine to the patients.

Thirdly, cleanliness and Quietness of the Organization is a major component of VB that

is put into consideration. Cleanliness of hospitals equals quality care delivery. Cleanliness is

facilitated in all aspects of the organization, from waste disposal and management to the dressing

of the hospital staff. The wards are cleaned on a daily basis and hand washing a habit among all

the hospital staff. In addition, the facilities are always quiet to give the patients and their doctors

a peace of mind and to facilitate faster recovery.

For the next three years, the ICU, ED, and Surgical Care Departments have implemented

various measures to facilitate successful implementation of VBP. Firstly, the departments have

updated all the EHR systems in order to facilitate advanced and innovative VBP techniques. To

facilitate effective reimbursement, analysis, collection and storage of information the use of EHR

systems is mandatory. Adoption of HER will help the organization embrace more meaningful

data insights. The systems will be updated on a regular basis and in accordance with the current

technological advancements and innovations. The systems also facilitate effective

communication among all the hospital staff. They ease all operations, and allow for fast retrieval

of significant patient information.

VALUE BASED PURCHASING

Secondly, the departments have adopted various strategies for health management that

will facilitate cost reduction and better utilization of hospital resources. The VBP is aimed at

ensuring that patients do not stay in the hospital premises for more time than is necessary. Hence,

the strategies are aimed at identifying the populations of patients in which healthcare costs are

more than others, and then developing programs that manage their costs. This is achieved by use

of various data analytical tools capable of estimating potential costs, benefits, and change in

service volumes and types. Thirdly, the departments have partnered with other healthcare service

providers to facilitate the success of VBP programs. Developing partnership programs helps the

departments to control all patient costs. It also helps to identify the current trends used by other

organizations to improve quality care delivery and adopt the best techniques for improving

patient care.

To implement the VBP strategies in the ICU, ED, and Surgical Care departments, all the

hospital staff need to be trained and educated appropriately. Firstly, creation of awareness of the

important of VBP in enhancing quality service delivery will be enhanced among all the staff so

as to get them on board (Figueroa et al, 2016). Communication is important with care givers and

all partners involved. Secondly, the staff will be trained how to use the various technologies that

facilitates efficiency of VBP operations. For instance, there will be training on how to

successfully integrate EHR in delivering patient care. Everyone will be involved in the change

process so as to minimize resistance to change. The staff will be informed of the importance of

VBP systems and how they align to the organization’s goal of maximum patient care delivery.

VALUE BASED PURCHASING

References

Centers for Medicare & Medicaid Services. (2015). Hospital value-based purchasing.

Department of Health.

Dogra, A. P., & Dorman, T. (2016). Critical care implications of the Affordable Care Act.

Critical care medicine, 44(3), e168.

Figueroa, J. F., Tsugawa, Y., Zheng, J., Orav, E. J., & Jha, A. K. (2016). Association between

the Value-Based Purchasing pay for performance program and patient mortality in US

hospitals: observational study. bmj, 353, i2214.

Gilman, M., Hockenberry, J. M., Adams, E. K., Milstein, A. S., Wilson, I. B., & Becker, E. R.

(2015). The financial effect of value-based purchasing and the hospital readmissions

reduction program on safety-net hospitals in 2014: a cohort study. Annals of internal

medicine, 163(6), 427-436.

Guy, M. (2017). Eleanor D. Kinney, The Affordable Care Act and Medicare in Comparative

Context.

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."