Impact of the value‐based purchasing program on hospital operations outcomes: An econometric analysis

Journal of Operations Management - Tập 66 Số 1-2 - Trang 151-175 - 2020
Seung Jun Lee1, Sriram Venkataraman2, Gregory R. Heim3, Aleda V. Roth4, Jon A. Chilingerian5
1School of Business Administration, College of Business and Economics, Chung-Ang University, Seoul, Republic of Korea
2Department of Management Science, Moore School of Business University of South Carolina Columbia South Carolina
3Department of Information and Operations Management, Mays Business School Texas A&M University College Station Texas
4Department of Management, College of Business Clemson University Clemson South Carolina
5The Heller School for Social Policy and Management, Brandeis University, Waltham, Massachusetts

Tóm tắt

AbstractThe Hospital Value‐Based Purchasing (VBP) Program, one of several federal regulations mandated by the Patient Protection and Affordable Care Act, uses Medicare provider payment penalties and bonuses to encourage hospital administrators to improve performance in four domains: clinical processes, patient outcomes, patient experiences, and efficiency. Before VBP's launch, some practitioners claimed VBP would have little impact, while others feared well‐off hospitals would be unfairly rewarded at the expense of previously poor‐performing hospitals. We examine whether and how the VBP penalties affect aggregate operating outcomes of healthcare providers in hospitals. Using secondary data, we find empirical evidence that hospitals with prior‐year VBP penalties exhibit positive associations between the penalty magnitude and certain current‐year care process improvements. Over the prior year, penalized hospitals also tend to exhibit increased patient case mix metrics, which should enhance revenue as a spillover effect. In a post hoc analysis, we observe that bonus‐receiving hospitals are less apt to exhibit subsequent performance improvements for these same metrics. Our contributions result from theoretically framing differences in hospital operating activities when facing the VBP Program's penalties as well as empirically demonstrating consequences of the penalty's magnitude.

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Journal of Operations Management

Tập 66 Số 1-2

151-175

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