A high level overview of quality metric market trends and value drivers from a valuation firm’s perspective.
In a value-based reimbursement environment, critical success factors have shifted from financial performance toward cost efficiency and quality performance benchmarked to national standards. With the growing influence of quality outcomes measurement organizations, such as The Joint Commission, LeapFrog, and U.S. News & World Report, hospitals and healthcare providers are increasingly using quality and cost to distinguish themselves and the value they add to the market. This means the utilization of quality metrics to gauge performance is more important than ever.
With this level of emphasis, the selection of the metrics to be measured, the determination of the associated benchmarks and stretch goals, and analysis of historical performance cannot be overlooked. In fact, from a valuation firm’s perspective, the quality metrics and their associated attributes are the main value drivers in determining the maximum fair market value (“FMV”) compensation payable to physicians for quality outcomes and in creating a meaningful quality improvement program that is consistent with the market.
Further, based on analysis of quality payments to physicians in the market, as well as, analysis of hospital pay-for-performance programs funded by both governmental and commercial payors, certain program attributes related to the metrics have been consistently observed when incentive dollars are rewarded for quality.
So, how do your quality improvement program’s metrics stack up? Take the quality metrics quiz to find out.