Medicare Blog

how much did medicare withhold for hospital reimbursements based on hcahps?

by Juana Walter Published 2 years ago Updated 1 year ago

Measuring Patient Experience
Now, as part of the ACA's Hospital Value-Based Purchasing Program [1], CMS is withholding 1 percent of Medicare payments—30 percent of which is tied to HCAHPS scores—to fund the incentives of the program [4].

Full Answer

How does HCAHPS patient satisfaction impact reimbursement?

Since 2012, HCAHPS patient satisfaction scores have played a pivotal part in hospital reimbursement through the Hospital Value-Based Purchasing Program. But how exactly does patient satisfaction impact reimbursement? According to the program, the higher a hospital’s HCAHPS scores, the higher their reimbursements will be, and vice versa.

What HCAHPS measures are publicly reported on Hospital Compare?

All ten HCAHPS measures are publicly reported for each participating hospital, as well as the national and state averages for each measure. The survey response rate and the number of completed surveys (in broad categories) are also publicly reported on Hospital Compare.

When did CMS start collecting HCAHPS data?

CMS first began collecting HCAHPS data for public reporting purposes in October 2006. In March 2008, CMS began to report HCAHPS results, using surveys of patients discharged from October 2006 through June 2007. Subsequently, HCAHPS results will be published quarterly and will be comprised of the most recent four quarters of data.

How do hospitals participate in HCAHPS?

Participating hospitals may either use an approved survey vendor, or collect their own HCAHPS data (if approved by CMS to do so). To accommodate hospitals, HCAHPS can be implemented in four different survey modes: mail, telephone, mail with telephone follow-up, or active interactive voice recognition (IVR).

How much do Hcahps scores affect reimbursement?

According to the program, the higher a hospital's HCAHPS scores, the higher their reimbursements will be, and vice versa. As a result, low HCAHPS scores impact a hospital's bottom line in two ways: by hindering their reputation among consumers and limiting the amount of funding they receive from Medicare.

Are Hcahps scores tied to reimbursement?

In addition, Medicare reimbursement has been linked to performance on the HCAHPS surveys. This began in 2005 when the Deficit Reduction Act mandated public reporting of HCAHPS scores in order for hospitals to receive full Medicare payment.

How Hcahps is impacting hospitals financially?

The HCAHPS puts financial pressure on hospitals. If they are unable to score in the top half of all facilities, they lose income. And as a result, this pressure can lead to solutions that may not be best for healthcare environments.

How are hospitals reimbursed for Medicare?

Inpatient Medicare Reimbursement Hospitals are reimbursed for the care they provide Medicare patients by the Centers for Medicare and Medicaid Services (CMS) using a system of payment known as the inpatient prospective payment system (IPPS).

How does value-based reimbursement work?

Value-based reimbursements are calculated by using numerous quality measures and determining the overall health of populations. Unlike the traditional model, value-based care is driven by data because providers must report to payers on specific metrics and demonstrate improvement.

Why do hospitals care about Hcahps?

About the survey: The HCAHPS Survey captures the patient's experience of communication with doctors and nurses, responsiveness of hospital staff, communication about medicines, cleanliness and quietness of the hospital, discharge information, transition to post-hospital care and overall rating of the hospital.

How does reimbursement affect patient-centered care?

With revenue cycle management of hospitals depending upon value-based care reimbursement, fostering a patient-centered healthcare setting that emphasizes better health outcomes could stabilize expenses and keep a hospital afloat.

Is Press Ganey the same as Hcahps?

HCAHPS measures frequency, how often a service was performed (Never, Sometimes, Usually, Always). Press Ganey measures quality, how well we performed a service (Very Poor, Poor, Fair, Good, Very Good). HCAHPS is used for public reporting.

What is the relationship between Hcahps and quality of care?

Goals of HCAHPS Create incentives for hospitals to improve quality of care based on public reporting of the survey results. Enhance public accountability in health care by increasing transparency through public reporting of the survey results.

How is Medicare reimbursement calculated?

The Centers for Medicare and Medicaid Services (CMS) determines the final relative value unit (RVU) for each code, which is then multiplied by the annual conversion factor (a dollar amount) to yield the national average fee. Rates are adjusted according to geographic indices based on provider locality.

Do hospitals lose money on Medicare patients?

Those hospitals, which include some of the nation's marquee medical centers, will lose 1% of their Medicare payments over 12 months. The penalties, based on patients who stayed in the hospitals anytime between mid-2017 and 2019, before the pandemic, are not related to covid-19.

How is DRG reimbursement calculated?

The MS-DRG payment for a Medicare patient is determined by multiplying the relative weight for the MS-DRG by the hospital's blended rate: MS-DRG PAYMENT = RELATIVE WEIGHT × HOSPITAL RATE.

When did Medicare start withholding?

Under CMS’s “value-based purchasing “ proposal , Medicare will begin withholding 1 percent of its payments to hospitals starting in October 2012. That money – $850 million in the first year – will go into a pool to be doled out as bonuses to hospitals that score above average on several measures. The agency’s final rule is due out soon.

How many hospitals will be affected by the CMS?

CMS says more than 3,000 hospitals will be affected. Under the proposal, patient scores would determine 30 percent of the bonuses, while clinical measures for basic quality care would set the rest. Hospitals argue the scores should have less weight, but nevertheless are trying to figure out how to improve their rankings.

Why are hospitals so bad?

One theory: Hospitals in these regions treat lots of patients with multiple ailments , which is associated with worse reviews. CMS says it adjusts its ratings to take that into account. Teaching hospitals and other large hospitals also get worse patient evaluations than do small community hospitals, some research shows, but CMS doesn’t factor that in.

What questions do hospitals ask when they discharge someone?

Questions include whether nurses and doctors always communicated well; whether the patients always received help as soon as they wanted; whether their pain was always well controlled; whether their rooms and bathrooms were clean; whether they got explanations about medications and whether they got directions on what to do after leaving the hospital.

What hospitals in Maryland have a lower score than average?

Some Maryland hospitals also have some lower-than-average scores. At Shady Grove Adventist Hospital in Rockville, 39 percent of patients said they always received help as soon as they wanted, 25 points below average. At Laurel Regional Hospital, 55 percent of patients said their rooms and bathrooms were always clean, 16 points below average.

Why are hospital ratings so low?

She says poor ratings can be caused by bad employee morale or bed shortages that force patients to remain in emergency rooms for hours before being admitted .

Why do medical centers fall short of perfection?

Academic medical centers often fall short of perfection because their patients need multiple medications and see lots of specialists, leaving more room for oversights, says Paul Cleary, dean of the Yale School of Public Health.

How does HCAHPS score affect reimbursement?

According to the program, the higher a hospital’s HCAHPS scores, the higher their reimbursements will be, and vice versa. As a result, low HCAHPS scores impact a hospital’s bottom line in two ways: by hindering their reputation among consumers and limiting the amount of funding they receive from Medicare.

When did CMS start HCAHPS?

While the Centers for Medicare & Medicaid Services (CMS) implemented the HCAHPS survey in 2006, public reporting of scores did not occur until 2008. In publicizing survey scores, CMS hopes to empower consumers to make objective and meaningful comparisons between healthcare institutions and incentivize those institutions to improve their quality of care.

What is HCAHPS score?

The Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) scoring system helps hospitals and their governing bodies evaluate patient satisfaction through quantitative measurements . The HCAHPS survey can be broken down into a series of questions that evaluate key elements of the patient experience, including communication with doctors and nurses, the responsiveness of hospital staff, hospital cleanliness and noise level, pain management, and availability of information. Scores are provided for each of these areas and more and then calculated into a single, overall patient satisfaction rating.

Is there a correlation between patient satisfaction and clinical outcomes?

While some studies have found a correlation between patient satisfaction and clinical outcomes, others question the implications that patient feedback can have on physician behavior.

Is patient satisfaction a benefit of Medicare?

But building a robust consumer base isn’t the only benefit of high patient satisfaction scores. Medicare payment systems have shifted in recent years, inextricably linking patient satisfaction scores with reimbursement rates. These shifts have positioned high-quality patient care as paramount to an institution’s viability and directly shaped every healthcare administrator’s patient satisfaction strategy.

How many measures are there in HCAHPS?

On Hospital Compare ( www.hospitalcompare.hhs.gov ), HCAHPS results are reported for 10 measures (six summary measures, two individual items and two global ratings). The six summary measures include how well nurses and doctors in the hospitals communicate with patients, how responsive the hospital staff are to patient needs, how well the hospital staff helps the patient manage pain, how well the staff communicates with the patient about medicines, and whether pertinent information was provided when the patient was discharged. The two individual items address the cleanliness and quietness of the patient’s room, and the two global ratings are the overall rating of the hospital and whether the patient would recommend the hospital to others.

Why is it important to adjust HCAHPS scores?

To ensure that publicly reported HCAHPS scores allow fair and accurate comparisons across hospitals, it is necessary to adjust for factors that are not directly related to hospital performance but do affect how patients answer HCAHPS survey items.

What is HCAHPS survey?

HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems; also known as the CAHPS ® Hospital Survey) is a standardized survey instrument and data collection methodology for measuring patients’ perceptions of their hospital experience. While many hospitals already collect information on patient satisfaction for their own use, until HCAHPS there was no national standard for collecting and publicly reporting information about patients’ experiences that allowed valid comparisons to be made across hospitals locally, regionally or nationally.

How long does it take to get HCAHPS?

The HCAHPS survey is administered 48 hours to six weeks after discharge to a random sample of adult patients across medical conditions. Participating hospitals may either use an approved survey vendor, or collect their own HCAHPS data (if approved by CMS to do so).

How much does HCAHPS cost?

Depending on the proportion of hospitals that incorporate the 27-item version of HCAHPS into existing surveys, we estimate the costs of HCAHPS to be between $4.1 and $19.1 million per year. The annual costs of a shorter version of HCAHPS are estimated to between $2.5 and $4.7 million if 75 percent of hospitals combine the shorter version with existing surveys, and between $1.0 and $3.6 million if 90 percent of hospitals combine it with existing surveys. In the context of overall hospital

How much does it cost to combine HCAHPS?

It would be considerably less expensive to combine HCAHPS with existing surveys. We estimate that it would cost only $3.26 per complete (or $978 per hospital) to incorporate the 27-item version of HCAHPS into existing surveys. This is based on the difference in costs for a 27 and 60 item survey. The estimated marginal cost of incorporating a shorter version of HCAHPS into existing surveys is between $0 and $2.03 per survey, or up to $609 per hospital. This lower bound estimate is based on information from several major vendors that they could incorporate a shorter version of HCAHPS at no additional cost to hospitals. The upper bound estimate is based on the difference in costs for a 15 and 27 item survey, which allows us to estimate the marginal costs associated with adding 12 items to an existing survey.

What is HCAHPS in health care?

HCAHPS fits into the larger context of performance reporting for quality improvement developed by the Strategic Framework Board of the NQF.13This framework is a market or “value-based” health care purchasing approach which, while in its infancy in the health care context, is based on the assumption that consumers take value (both cost and quality) into account in any major purchasing decision. This framework14consists of two pathways, each of which represents actions facilitated by the availability of performance information:

How to develop HCAHPS cost estimates?

Our methodology for developing HCAHPS cost estimates included reviewing the small number of existing cost studies, conducting interviews with several of the major hospital patient satisfaction vendors to discuss cost-related issues, and collecting cost estimates from other survey companies that may be able to collect HCAHPS data for hospitals. We also reviewed Federal Register comments related to HCAHPS costs, information available on the web sites of the major survey vendors, used information from a Medicare Payment Advisory Commission (MedPAC) report, and analyzed

Why is the HCAHPS survey important?

First, the survey is designed to produce comparable data on the patient’s perspective on care to allow objective and meaningful comparisons between hospitals on domains that are important to consumer decision-making. The survey results are to be publicly reported to create incentives for hospitals to improve their quality of care. The intent of this public reporting is to enhance public accountability by providers by increasing the transparency of the quality of hospital care provided in return for the public investment.11To date, reports of

What is HCAHPS in NQF?

As described above, HCAHPS fits into the larger context of market-based, value-driven performance-reporting for quality improvement developed by the NQF. Both “pathways” described by that framework provide potential benefits to consumers and to providers through the availability of performance information. Consumers and other stakeholders benefit by obtaining increased value, while providers benefit by using performance information to improve quality.

Is HCAHPS a small expenditure?

expenditures, HCAHPS represents a small expenditure, but concerns about the financial impact of HCAHPS may be valid, given the negative Medicare margins currently being experienced by hospitals. There appear to be significant savings associated with combining HCAHPS with existing surveys, and hospitals will have a financial incentive to combine HCAHPS with their existing surveys. Since some vendors have indicated that they are able to integrate HCAHPS with their patient satisfaction surveys, this may place competitive pressure on other companies to also offer integrated surveys to their clients. Potentially offsetting the cost efficiencies associated with combining HCAHPS with existing surveys are several statistical issues that have led to concerns about whether it is appropriate to combine HCAHPS with existing surveys. These include concerns about the impact of a longer survey on response rates, the impact of different response options used in HCAHPS and patient satisfaction surveys, and the impact of adding HCAHPS to the flow of patient surveys.

HCAHPS Development, Testing and Endorsement

  • Beginning in 2002, CMS partnered with the Agency for Healthcare Research and Quality (AHRQ), another agency in the federal Department of Health and Human Services, to develop and test the HCAHPS survey. AHRQ carried out a rigorous scientific process, including a public call for meas…
See more on cms.gov

HCAHPS and Public Reporting

  • Publicly reported HCAHPS results are based on four consecutive quarters of patient surveys. CMS publishes participating hospitals' HCAHPS results on the Care Compare website (www.medicare.gov/care-compare) four times a year, with the oldest quarter of patient surveys rolling off as the most recent quarter rolls on. A downloadable version of HCAHPS results is als…
See more on cms.gov

For More Information

  • To learn more about HCAHPS, including background information, recent news and policy updates, please visit HCAHPS On-Line, at www.hcahpsonline.org . Or access the Downloadsand links below. Note: CAHPS(Consumer Assessment of Healthcare Providers and Systems) is a registered trademark of the Agency for Healthcare Research and Quality, a U.S. Government agency.
See more on cms.gov

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