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Running head: BUSINESS AND FINANANCIAL MANAGEMENT1Application of Business and Financial Management PrinciplesWestern Governors UniversityValue Based Purchasing
BUSINESS AND FINANACIAL MANAGEMENT2Value based care is the idea of high-quality health care that consistently delivers quality outcomes and patient satisfaction for the lowest possible cost (U.S. Centers for Medicare and Medicaid Services [CMS], 2019). While healthcare has historically been billed on a fee-for-service basis, healthcare payers are moving to systems that bundle services and reimburse contingent to outcomes and patient satisfaction. This system of value-based purchasing (VBP) prevents healthcare providers from ordering and performing unnecessary tests and procedures because they will only be reimbursed based on the quality outcome. Providers and staff are held responsible for the care they provide and the outcomes that result from that care. This leads to decrease in waste, increase in positive patient outcomes, and increase in patient satisfaction (Drachenberg & Springston, 2016). A.LMH HealthLMH Health is 174 bed acute care facility in Lawrence, Kansas. LMH is a community owned, not-for-profit hospital that was founded on a mission that “no person shall be excluded on account of race, or physical, social, or financial condition” (LMH Health, 2019a). The hospital does not receive tax support from the city or county and all revenue is reinvested in services, equipment, and facilities to support the mission of the organization. A1. LMH heath fully embraces VBP by recording quality outcome measures and creating policies and processes to improve those measures. Quality measures are tracked in the areas of patient satisfaction, timely and efficient care, complications and deaths, unplanned hospital visits, psychiatric unity services, and payment and value of care. These quality measures are evaluated and shared publicly by Hospital Compare, which is published by CMS. LMH Health
BUSINESS AND FINANACIAL MANAGEMENT3rates below the national average in mortality, but above the national average in all other measures (CMS, 2019). LMH shares their mission to provide quality care on the public website. The information provided shares information about VBP and how those measures are tracked and rated by outside organizations such as Centers for Medicare and Medicaid, HCAHPS, and Hospital Compare. Hospital quality measures relating to heart attack, heart failure, pneumonia, and surgical care are published in detail to increase public awareness and create transparency in care (LMH, 2019c). LMH embraces VBP by using patient satisfaction surveys to evaluate patient experience in the areas of care team communication, scheduling experience, patient advocacy, available treatment and medication information, pain management, healthcare worker teamwork, and hospital cleanliness and environment. The hospital uses feedback from these surveys to identify quality measures that need improvement. Some of the current quality improvement initiatives