Value-Based Purchasing Project
Value-Based Purchasing
Principles of value-based purchasing require that physicians and hospital managers have good information about prices and performance of possible choices, as well as aligned incentives concerning what is most important in the choice to be made. Ideally, an informed, cost-conscious consumer also participates in the discussion as to which procedure and device is selected.
In the medical device sphere, value-based purchasing requires integrated data on the full course of treatment, including care delivered prior to hospital admission; care delivered in the hospital or ambulatory surgical setting; and care delivered in a nursing home, rehabilitation center, or the patient's home after discharge. It also requires organizational collaboration among hospitals, physicians, and device firms.
For a broader discussion of value-based purchasing for medical devices, see BCHT Director James Robinson's 2008 Health Affairs article, "Value-Based Purchasing for Medical Devices" [Abstract].
The IHA Value-Based Purchasing project provides participating hospitals with information and strategies to improve the efficiency of orthopedic, spine, and cardiac service lines. Its premise is that quality and efficiency can be improved through better data on use and price, improved purchasing of implants, and reimbursement methods that bundle together payments for the physician, hospital, and device.
The initiative began with a demonstration project for 11 hospitals in Orange County and has now been rolled out across the state to 68 hospitals. The statewide initiative is funded by the Blue Shield of California Foundation. For more information on IHA's Value-Based Purchasing initiative, please see its website at www.iha.org.
