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Outcome Measures and Value Based Purchasing (Text Version)

Slide presentation from the AHRQ 2009 conference.

On September 14, 2009, Michael Rapp made this presentation at the 2009 Annual Conference. Select to access the PowerPoint® presentation (10 MB).

Slide 1


Outcome Measures and Value Based Purchasing

AHRQ 2009 Annual Conference

Michael T. Rapp, MD, JD, FACEP
Director, Quality Measurement and Health Assessment Group
Office of Clinical Standards & Quality .Centers for Medicare & Medicaid Services


Slide 2



  • Value Based Purchasing
  • Current CMS VBP implementation
  • Outcome measures in use by CMS
  • Review considerations in use of outcome measures in VBP
  • CMS 30 day mortality measures
  • CMS 30 day re-admission measures


Slide 3


What VBP Means to CMS

  • Transforming Medicare from a passive payer to an active purchaser of higher quality, more efficient health care
  • Tools and initiatives for promoting better quality, while avoiding unnecessary costs
    • Tools: measurement, payment incentives, public reporting, conditions of participation, coverage policy, QIO program
    • Initiatives: pay for reporting, pay for performance, gainsharing, competitive bidding, coverage decisions, direct provider support
  • Current program authority to pay differentially for better quality
    • ESRD VBP authorized in MIPAA


Slide 4


Support for VBP

  • President's Budget
    • FYs 2006-09
  • Congressional Interest in P4P and Other Value-Based
  • Purchasing Tools
  • MedPAC Reports to Congress
    • P4P recommendations related to quality, efficiency, health information technology, and payment reform
  • IOM Reports
    • P4P recommendations in To Err Is Human and Crossing the Quality Chasm Report, Rewarding Provider Performance: Aligning Incentives in Medicare
  • Private Sector
    • Private health plans
    • Employer coalitions


Slide 5


VBP Demos and Pilots

  • Premier Hospital Quality Incentive Demonstration
  • Physician Group Practice Demonstration
  • Medicare Care Management Performance Demonstration
  • Nursing Home Value-Based Purchasing Demonstration
  • Home Health Pay-for-Performance Demonstration
  • ESRD Bundled Payment Demonstration
  • ESRD Disease Management Demonstration
  • Medicare Health Support Pilots
  • Care Management for High-Cost Beneficiaries Demonstration
  • Medicare Healthcare Quality Demonstration
  • Gainsharing Demonstrations
  • Electronic Health Records (EHR) Demonstration
  • Medical Home Demonstration


Slide 6


VBP Initiatives

  • Hospital Pay for Reporting: Inpatient & Outpatient
  • Hospital VBP Plan & Report to Congress
  • Hospital-Acquired Conditions & Present on Admission Indicator
  • Physician Quality Reporting Initiative
  • Physician Resource Use Confidential Reports
  • Home Health Care Pay for Reporting
  • Ambulatory Surgical Centers Pay for Reporting
  • ESRD Pay for Performance


Slide 7


Measures for VBP

  • Various measure types used
  • Various pros and cons to each
    • Process
      • Most available but may become "topped out"
      • Focus on specific but limited set of processes that impact outcomes
    • Outcome
      • Less available but broader in scope, less subject to become "topped out"
    • Experience of Care
      • May relate to processes or outcomes
    • Structural


Slide 8


Outcomes Measures in Use by CMS

  • Measure Summary:�74 total current CMS outcome measures in use (approximately)
    • 28 Inpatient (including QIO)
    • 8 Physician
    • 12 Home Health
    • 14 Nursing Home
    • 4 ESRD
    • 8 Medicare Advantage


Slide 9


Hospital Inpatient Outcome Measures:
Mortality, Complications, Readmissions (RHQDAPU & QIO)

  • Mortality (Medical Conditions)
    • 30 day mortality AMI, HF, PNE, (CMS) *
    • Selected Medical Conditions (AHRQ) *
  • Mortality (Surgical Conditions/Procedures)
    • AAA, Hip Fractures (AHRQ) *
    • Selected Surgical Conditions (AHRQ) *
    • Death of surgical patients with treatable serious complications*
    • Complication/patient safety for selected indicators *
  • Complications (Medical and Surgical)
    • Post op wound dehiscence in abdominal-pelvic surgery *
    • Accidental puncture or laceration *
    • Iatrogenic pneumothorax *
    • MRSA Infection Rate; Transmission Rate (CMS-QIO)
    • Hospital Acquired Pressure Ulcers (CMS-QIO)
  • Readmission (Medical Conditions)
    • AMI, HF, PNE (CMS) *
    • All patient Readmission Rate (CMS-QIO)
  • Intermediate Outcome
    • Cardiac Surgery Patient Controlled 6 AM Glucose
  • [* = RHQDAPU Hospital Pay for Reportin Program]


Slide 10


Premier Hospital Quality Incentive Demonstration (HQID)

  • The Premier HQID recognizes and provides financial rewards to hospitals that demonstrate high quality performance in a number of areas of acute care.
  • The demonstration rewards participating top performing hospitals by increasing their payment for Medicare patients.
  • Clinical conditions and procedures
    • Heart attack
    • Heart failure
    • Pneumonia
    • Coronary artery bypass graft
    • Hip and knee replacements


Slide 11


Hospital Outcome Measures—Premier Demonstration

  • Current
    • Inpatient Mortality Rate AMI, CABG, HF
    • Post-op Hemorrhage or Hematoma
      • Hip/Knee Replacement
    • Physiologic and Metabolic Derangement
      • Hip/Knee Replacement
  • Expansion
    • Test further outcome measures
      • AHRQ PSI's
      • AHRQ Inpatient Mortality (IQI)
      • CMS 30 day readmission and mortality measures AMI, HF, PNE


Slide 12


Outcome Measures—Hospital VPP Plan

  • Report to Congress
  • Included process, experience of care
  • Method for including 30 day mortality measures in scoring developed subsequently


Slide 13


Hospital Acquired Conditions: Background

  • The Deficit Reduction Act (DRA) of 2005 requires the Secretary to identify conditions that are:
    • (a) high cost or high volume or both
    • (b) result in the assignment of a case to a DRG that has a higher payment when present as a secondary diagnosis, and
    • (c) could reasonably have been prevented through the application of evidence-based guidelines
  • Beginning October 1, 2008, Medicare no longer paid hospitals at a higher rate for the increased costs of care that result when a patient is harmed by one of the listed conditions if it was hospital-acquired.
  • Medicare continues to assign a discharge to a higher paying MS�DRG if the selected condition is present on admission (POA).
  • The POA indicator reporting requirement and the HAC payment provision apply to IPPS hospitals only.


Slide 14


Hospital Acquired Conditions

  • Foreign Object Retained After Surgery
  • Air Embolism
  • Blood Incompatibility
  • Stage III and IV Pressure Ulcers
  • Falls and Trauma
    • Fractures
    • Dislocations
    • Intracranial Injuries
    • Crushing Injuries
    • Burns
    • Electric Shock


Slide 15


Hospital Acquired Conditions

  • Manifestations of Poor Glycemic Control
    • Diabetic Ketoacidosis
    • Nonketotic Hyperosmolar Coma
    • Hypoglycemic Coma
    • Secondary Diabetes with Ketoacidosis
    • Secondary Diabetes with Hyperosmolarity
  • Catheter-Associated Urinary Tract Infection (UTI)
  • Vascular Catheter-Associated Infection


Slide 16


Hospital Acquired Conditions

  • Surgical Site Infection Following:
    • Coronary Artery Bypass Graft (CABG)—Mediastinitis
    • Bariatric Surgery
      • Laparoscopic Gastric Bypass
      • Gastroenterostomy
      • Laparoscopic Gastric Restrictive Surgery
    • Orthopedic Procedures
      • Spine
      • Neck
      • Shoulder
      • Elbow
  • Deep Vein Thrombosis (DVT)/Pulmonary Embolism (PE)
    • Total Knee Replacement
    • Hip Replacement


Slide 17


Hospital Acquired Conditions: Projected Costs savings

  • Savings estimates for the next 5 fiscal years are shown below:
Year Savings (in millions)
FY 2009 $21
FY 2010 21
FY 2011 21
FY 2012 22
FY 2013 22


Slide 18


National Coverage Determination—Hospitals and Physicians

  • No coverage for
    • Surgery on wrong body part
    • Surgery on wrong patient
    • Wrong surgery on a patient
  • Not reasonable and necessary


Slide 19


Physician Outcome Measures (PQRI)

  • Intermediate Outcomes
    • Diabetes: HbA1C, LDL, BP Control
  • Mortality
    • None
  • Complications
    • Medical Conditions
      • None
    • Surgical Conditions
      • CABG
        • Deep Sternal Wound Infection; Stroke/CVA; Post Op Renal Insufficiency; Prolonged Intubation; Surgical Re-exploration


Slide 20


Physician Outcome Measures
(Physician Group Practice Demonstration)

  • Intermediate Outcome Measures
    • Diabetes HbA1c, Blood Pressure, and LDL control


Slide 21


Physician Outcome Measures
(Physician VBP Plan)

  • Report to Congress required in MIPPA
  • Due May, 2010
  • Outcome measures under consideration


Slide 22


Home Health Outcome Measures

  • Management of Care
    • Acute Care Hospitalization
    • Emergent Care (risk adjusted)
    • Discharge to Community
  • Improvement in functional status
    • Ambulation /locomotion
    • Bathing
    • Bed transferring
    • Dyspnea
  • Medication Management
    • Management of Oral Medication
  • Pain
    • Improvement in pain interfering with activity
  • Surgical Wounds
    • Improvement in status of surgical wounds
  • Complications
    • Emergency Care for Wound Infections, Deteriorating Wound Status
  • Incontinence
    • Improvement in Urinary Incontinence


Slide 23


Nursing Home Outcome Measures (Long Stay)

  • Pressure Sores
    • High risk patients
    • Low risk patients
  • Functional Status
    • Improvement in Daily Activities independence
    • Most of time in Bed or Chair
    • Ability to move about in and around Room worse
    • Weight loss
  • Pain
    • Moderate to Severe Pain
  • Incontinence
    • Catheter inserted and left in bladder
    • Loss of control of bowels or bladder
  • Urinary Tract Infection
    • Percentage with UTI
  • Mental Health
    • Percentage more anxious or depressed


Slide 24


Nursing Home (short stay)

  • Percentage with Delirium
  • Percentage with Moderate to Severe Pain
  • Percentage with pressure sores


Slide 25



  • Patient Survival
  • Hematocrit/Hemoglobin Control for ESA therapy
  • Hematocrit below minimum level


Slide 26


Medicare Advantage

  • Diabetes
    • Blood Pressure Control (2)
    • HbA1c Good Control; Poor Control
    • LDL Control
  • Hypertension
    • Blood Pressure Control
  • Improving Mental Health
  • Improving Physical Health


Slide 27


Outcome Measure:
Data Considerations

  • Claims
    • Routinely collected secondary data source
    • CMS 30 day Mortality
    • CMS 30 Day Readmission
    • AHRQ measures
  • Lab Data
    • Helpful for risk adjustment but not readily available for Medicare
  • Chart Abstraction
    • Burdensome but benefit of primary source and complete data
  • Registries
    • Data collection over time supports outcome measures
    • Can accommodate multiple data source types
  • Electronic Health Record
    • Future financial incentives for both physicians and hospitals to use
    • Reporting clinical quality measures required element of "meaningful use"
    • Primary source data
    • Clinical data supports risk adjustment


Slide 28


CMS Hospital 30 day Mortality Measures

  • Claims-based
    • Risk standardized 30-day all-cause mortality and readmission measures for AMI, HF and Pneumonia
    • NQF endorsed and implemented for RHQDAPU program
  • Registry-based
    • PCI 30-day all-cause risk standardized mortality for STEMI/shock and non-STEMI/non-shock patients
    • Risk standardized 30-Day All-Cause Mortality and/or Complications for Lower Extremity Bypass
    • NQF endorsed


Slide 29


CMS 30 day Mortality and Readmission

  • Endorsed by National Quality Forum and adopted by Hospital Quality Alliance
  • Complies with American Heart Association and American College of Cardiology standards for outcomes models
    • Well-defined patient cohort
    • Clinically coherent model risk-adjustment
    • Use of an appropriate outcome
    • Standardized period of follow-up: 30-day
  • Currently publicly reported on Hospital Compare
  • Developed by Yale/Harvard team of clinical and statistical experts


Slide 30


Standardized Period of follow-up

  • All patients followed for 30 days from discharge
  • 30-days Strikes a Balance
    • Allow enough time for hospitals to have impact on outcome
    • Take into account discharge practice variation
    • Consistent for mortality and readmission measures


Slide 31


Risk Adjustment

  • Risk adjustment takes into account patient case mix and hospital-specific effect
  • Hospital rates are calculated based on 3 years of hospitalizations
  • Risk factors based on index admission and the prior year from inpatient, outpatient, and physician claims
  • Models estimated on administrative data, validated by models based on chart data


Slide 32


Interval Estimates

  • Risk Standardized Rate—point estimate
  • Interval estimates (IEs) are used to determine if mortality or readmission is different from national rate with high-degree of certainty
  • 95% IEs is used to specify lower and upper IEs


Slide 33


Distribution of Hospital Mortality

Images: Two graphs showing risk-standarized mortality rates (%) for AMI and HF.
AMI shows a spike of about 650 hospitals at about 17%.
HF shows a spike of about 610 hospitals at about 12%.


Slide 34


Performance Categories

Image: Chart showing the placement of hospitals compared to the national rate in several performance categories.

  • Hospital A (200 cases)—less than the national rate—"Better"
  • Hospital B (100 cases)—at the national rate—"No different"
  • Hospital C (150 cases)— above the national rate—"Worse"
  • Hospital D (20 cases)—at the national rate—"Number cases too small (fewer than 25)"


Slide 35


Distribution of AMI Mortality by HRR

Acute Myocardial Infarction 30-Day Risk-Standardized Mortality Rate (RSMR)
Weighted Average By Hospital Referral Region (HRR)

Image: Map of the United States showing the distribution of AMI mortality by HRR.


Slide 36


Distribution of HF Mortality by HRR

Heart Failure 30-Day Risk-Standardized Mortality Rate (RSMR)
Weighted Average By Hospital Referral Region (HRR)

Image: Map of the United States showing the distribution of HF mortality by HRR.


Slide 37


Distribution of Hospital Readmission

Images: Two graphs showing risk-standarized readmission rates (%) for AMI and HF.
AMI shows a spike of about 960 hospitals at about 20%.
HF shows a spike of about 610 hospitals at about 24%.


Slide 38


Distribution of AMI Readmission by HRR

Acute Myocardial Infarction 30-Day Risk-Standardized Readmission Rate (RSMR)
Weighted Average By Hospital Referral Region (HRR)

Image: Map of the United States showing the distribution of AMI readmission by HRR.


Slide 39


Distribution of HF Readmission by HRR

Heart Failure 30-Day Risk-Standardized Readmission Rate (RSMR)
Weighted Average By Hospital Referral Region (HRR)

Image: Map of the United States showing the distribution of HF readmission by HRR.


Slide 40


2009 National Results
(7/05-6/08 discharges): Readmission

  • Average 30-day hospital readmission rates are high (AMI 19.9, HF 24.5, PN 18.2)
  • There is high variation
  • The goal is not zero; all hospitals have room to improve


Slide 41


CMS' ultimate goal is to shift the curve

Image: Graph showing a spike in the readmission rate being moved from the high side to the low side.


Slide 42



  • Active work to develop VBP programs that include outcome measures
  • Greatest numbers of outcome measures in inpatient hospital and other provider settings
  • Fewer physician outcome measures
  • Outcome measures
    • Broader reach than process measures
    • Meaningful to consumers
    • Present issues such as risk adjustment and sufficient numbers and how best to incorporate into VBP scoring
Current as of December 2009
Internet Citation: Outcome Measures and Value Based Purchasing (Text Version). December 2009. Agency for Healthcare Research and Quality, Rockville, MD.


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