Value-Based Purchasing

Curated by Susan L. Smith, J.D., M.A.
Writer and Consultant

The Value-Based Purchasing (VBP) Program for hospitals was established by section 3001 of the Affordable Care Act (ACA) as part of CMS' ongoing efforts to transition Medicare payment into a value-based system that would improve quality of care, particularly care provided in the inpatient hospital setting. Under the VBP program, hospitals are paid for inpatient acute care services based on the quality, rather than the quantity, of care provided. The ACA also established value-based purchasing for skilled nursing facilities and ambulatory surgical centers.