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Healthcare Insights

Average value-based purchasing scores by state

The Hospital Value-Based Purchasing (VBP) Program is one of several value-based care programs introduced by the Affordable Care Act. Value-based programs link provider reimbursement to quality of care, not just the number of services provided.

The Hospital VBP Program encourages hospitals to deliver high-quality care to Medicare patients through financial incentives. Under the program, hospitals receive payment adjustments based on the quality of care the hospitals deliver to patients during inpatient stays.

The Centers for Medicare and Medicaid Services (CMS) calculates a total performance score (TPS) for each hospital to determine payment adjustments. The TPS for each hospital is based on performance, as compared to peers, across four measurement domains:

  • Clinical Outcomes (25%)
  • Safety (25%)
  • Person and Community Engagement (25%)
  • Efficiency and Cost Reduction (25%)

Hospitals may earn an increase, decrease, or no change to their Medicare reimbursements for the following fiscal year. The actual amount of incentive payments a hospital earns is also linked to the hospital’s value-based incentive payment percentage and the total amount available under the program for value-based incentive payments.

U.S. states ranked by average VBP score

RankState   Total performance score   Net patient revenue   Case mix index   Staffed beds   Discharges   Explore dataset
1   HI   48.32   $245,357,523   1.50   167.29   5,994   Explore
2   OR   48.16   $385,121,088   1.52   204.59   7,794   Explore
3   AK   48.13   $159,268,466   1.31   89.70   2,831   Explore
4   MN   47.17   $356,496,165   1.39   175.11   6,593   Explore
5   MT   45.07   $110,269,481   1.23   66.79   2,060   Explore
6   WY   41.75   $77,666,961   1.39   58.94   1,512   Explore
7   WI   40.94   $283,774,667   1.48   148.40   5,829   Explore
8   IA   40.34   $165,996,749   1.30   125.63   4,513   Explore
9   VT   39.88   $255,333,685   1.29   115.68   4,714   Explore
10   ND   38.55   $115,072,903   1.22   79.45   2,505   Explore
11   MI   38.45   $548,202,287   1.51   340.92   15,562   Explore
12   OK   38.00   $147,414,175   1.44   123.77   4,765   Explore
13   CO   37.36   $307,256,260   1.59   162.59   6,717   Explore
14   ME   36.94   $287,284,502   1.35   135.86   5,138   Explore
15   SD   36.80   $217,110,248   1.31   116.16   3,911   Explore
16   ID   36.21   $198,950,544   1.46   100.41   3,885   Explore
17   WA   36.18   $559,039,993   1.52   278.25   11,507   Explore
18   KS   36.17   $114,715,982   1.33   94.69   3,432   Explore
19   UT   35.93   $387,841,853   1.55   170.94   8,356   Explore
20   NC   35.89   $507,415,440   1.49   298.40   14,001   Explore
21   VA   35.59   $392,605,463   1.50   272.89   10,725   Explore
22   MA   34.65   $558,708,047   1.39   275.02   11,791   Explore
23   NE   34.56   $128,250,798   1.37   100.11   3,053   Explore
24   NM   34.31   $207,871,517   1.40   120.91   4,949   Explore
25   IL   34.02   $570,365,972   1.49   344.64   14,589   Explore
26   AZ   34.01   $288,029,972   1.57   200.14   8,610   Explore
27   OH   33.94   $439,868,580   1.52   247.97   10,915   Explore
28   CA   33.74   $580,453,814   1.66   316.02   14,018   Explore
29   MO   33.68   $508,301,753   1.45   363.75   14,811   Explore
30   AL   33.40   $216,318,569   1.43   234.54   8,398   Explore
31   LA   32.51   $132,434,111   1.41   139.88   4,420   Explore
32   SC   32.46   $403,913,580   1.50   236.95   11,467   Explore
33   NH   32.27   $273,242,565   1.41   119.66   5,243   Explore
34   PA   32.25   $493,573,411   1.51   374.93   14,754   Explore
35   GA   32.06   $328,186,798   1.49   214.03   9,294   Explore
36   CT   32.06   $662,494,242   1.50   295.07   15,273   Explore
37   RI   32.01   $430,746,480   1.51   295.81   11,761   Explore
38   TX   31.93   $290,954,102   1.52   233.04   9,545   Explore
39   KY   31.59   $282,719,742   1.37   235.58   8,370   Explore
40   AR   31.15   $119,941,156   1.39   129.95   4,698   Explore
41   NY   30.78   $747,045,615   1.55   384.18   16,346   Explore
42   IN   30.71   $268,250,340   1.49   171.55   6,662   Explore
43   WV   30.71   $242,508,774   1.31   180.45   6,125   Explore
44   FL   30.31   $440,185,564   1.54   322.73   16,215   Explore
45   TN   29.93   $697,658,503   1.48   573.42   26,135   Explore
46   MS   29.25   $107,045,621   1.35   141.22   3,867   Explore
47   DC   27.94   $504,795,339   1.67   1711.30   8,705   Explore
48   DE   27.36   $419,209,857   1.52   237.95   11,375   Explore
49   NJ   27.29   $417,009,671   1.59   332.35   13,996   Explore
50   NV   27.16   $239,713,756   1.41   195.03   9,752Explore

Fig. 1 Data from Definitive Healthcare based on CMS Quality Metrics for FY 2021.

What were the average value-based purchasing scores by state in 2021?

In 2021, 27 states scored higher than the national average of 33.9. Nationwide, average value-based purchasing TPS scores ranged from a low of 27.2 to a high of 48.3. Nevada had the lowest average score at 27.2, and Hawaii had the highest score at 48.3 out of 100. Ohio scored closest to the overall average, with a score of 33.9.

Case mix index (CMI) does not appear to strongly influence VBP performance, with all states reporting between a 1.2 and 1.7 CMI. The top five states with the highest VBP scores—Hawaii, Oregon, Alaska, Minnesota, and Montana—reported average CMIs between 1.2 and 1.5.

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