Value-based purchasing should adhere to 5 principles, AHA leader tells group

According to an article in the AHA News Now, AHA President and CEO Rich Umbdenstock expressed hospitals’ commitment to health reform, stressing that the “status quo simply isn’t sustainable.” Participating today in a National Business Coalition on Health panel discussion on value-based purchasing, Umbdenstock said that hospital leaders believe the concept of value-based purchasing – structuring provider payments to reward performance excellence – holds merit for improving care quality. However, he said any approach to pay for performance should adhere to five principles. It should be:

•· Developed collaboratively;

•· Align incentives across hospitals, physicians and other providers

•· Provide rewards that will motivate change;

•· Reward both quality improvement and attainment; and

•· Avoid unintended consequences, such as institutionalizing existing care disparities.


NBCH is an employer coalition promoting value-based purchasing.


(SOURCE: The Commonwealth Fund e-Alert,, October 30, 2008)