Value Based Purchasing (VBP) is a concept by which "purchasers" of health care (government, employers, and consumers) hold the health care system (physicians, hospitals, health plans, etc.) accountable for both quality and cost of care. VBP programs are based on health benefit plan models that promote health care quality improvement and should result in systemic cost containment or reduction. VBP programs are typically structured around a combination of incentives intended to encourage better health care decision making by both plan beneficiaries and clinical providers. A core requirement of effective VBP program design is a system to measure and report comparative quality and cost performance to facilitate data transparency across all program participants.
The American Academy of Family Physicians (AAFP) recognizes the urgency to improve both efficiency and effectiveness in the delivery of medical care, in which "efficiency" is understood to mean "doing the thing right" and "effectiveness" means "doing the right thing." VBP is one approach to achieving a balance between efficiency and effectiviness. However, given the technical, legal and ethical challenges in designing and implementing VBP, it is imperative that the key physician measurement processes used in VBP should be transparent and adhere to the AAFP policies on "Performance Measures Criteria," "Physician Profiling," "Data Stewardship," and "Transparency."
The AAFP supports VBP programs that adhere to these principles:
Based on these principles, the AAFP will use its influence to support and encourage the utilization of the following guidelines:
(2009 COD) (2014 COD)
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