Aligning Medicaid’s Supplemental Payments with the Goals of Value-Based Purchasing
<p>Medicaid’s supplemental payments to safety-net hospitals have grown in importance over the years as a way for states to make up for the program’s historically low reimbursement rates. Because these payments are typically not tied to health care quality, costs, or outcomes, however, they can detract from states’ efforts to promote value-based purchasing.</p><p>In a new Commonwealth Fund report, analysts with Manatt, Phelps & Phillips examine states’ and hospitals’ reliance on these payments, the potential impact of new federal rules, and how Medicaid supplemental payments might be redeployed to better support value-based purchasing.</p>
<p>The report discusses a number of options for revamping payments so they better align with state efforts to promote high-quality, cost-effective care while still preserving the health care safety net.</p>