Inpatient Value

The Opening Bid
May 20, 2011

Earlier this month, Medicare finalized the rules of a new program—mandated by the Affordable Care Act—that will pay hospitals based on the quality, not just the quantity, of care they provide. Centers for Medicare and Medicaid Services (CMS) Administrator Donald Berwick has called the initiative a “historic change” to the current system, which too often incentivizes doctors to provide more care at higher costs—even when that extra care doesn’t translate into better health.