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Final FY 2017 Hospital VBP Program Adjustment Factors Posted

On November 1, the Centers for Medicare & Medicaid Services (CMS) posted the final incentive payment adjustment factors for the fiscal year (FY) 2017 Hospital Value-Based Purchasing Program (VBP). These factors are being used to adjust base operating Medicare Severity Diagnosis-Related Group (MS-DRG) payments to eligible hospitals for discharges this fiscal year. The base operating MS-DRG payments to eligible inpatient prospective payment system hospitals are being reduced by 2% in FY 2017 to fund an estimated $1.8 billion in incentive payments for the VBP program. The actual VBP amount earned by each hospital depends on its Total Performance Score and incentive payment percentage.

The CMS Factsheet can be found at https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2016-Fact-sheets-items/2016-11-01.html

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