Why Do I Need It
Revenue Reimbursements will be based on Comparative Results against Competition.
As one hospital thrives another will lose revenue
sthetoscope on a pack of money

Historic Move by CMS to Value-Based Purchasing!

Affordable care act
Better, Smarter, Healthier: In historic announcement, HHS sets clear goals and timeline for shifting Medicare reimbursements from volume to value and higher Risk
In this year alone, low Value Based Purchasing performance can and is already putting some Non-Profit Hospitals in the red. When profit margins are 2%-3% and 5.5% of CMS revenue is Lost
But some risk isn’t based on risk tolerance, and right now, most hospitals are already at risk for decreased reimbursement from CMS’s value-based programs. For example, if a hospital performs poorly in all three programs (hospital-acquired conditions, high readmissions, and value-based purchasing), it is at risk for a 5.5 percent reduction during 2015. For hospital-acquired conditions alone, Medicare is reducing payments by one percent for 721 hospitals this year.
Read the Direct Primary Care Journal
In this New Era of Value and Performance Based Care, the Risk Level for Hospital Revenue is getting Much Higher.
HHS also set a goal of tying 85 percent of all traditional Medicare payments to quality or value by 2016 and 90 percent by 2018 through programs such as the Hospital Value Based Purchasing and the Hospital Readmissions Reduction Programs.
quality and value based reimbursement percentage table
Value Based Care is Already Creating Sustainability Risks for Some Systems.
Wall Street buidings
Ratings agency sees 'distressed hospitals' increasingly seeking capital partners
The frequency of hospital mergers will remain "elevated" over the next two years, as stand alone hospitals continue to struggle with mounting operational challenges and seek larger partners, according to a new Moody's report.
hospital executive analysing data
Financial viability continues to be a significant concern for healthcare CEOs.
Standard & Poor’s Financial Services forecasts more ratings downgrades in 2015. The agency is also updating its methodology for credit ratings of acute-care, stand-alone hospitals. Specifically, these new criteria assign ratings using a framework that considers enterprise risk (enterprise profile) and financial risk (financial profile) factors. The credit rating agency expects almost one-quarter of stand-alone hospitals to have non-stable outlooks.
And there are now Winners and Losers
Revenue Reimbursements will be based on Comparative Results against Competition. As one hospital thrives another will lose revenue and because of the increased performance chasm, the gap will be widening. For lower performing hospitals, Improvement scores are imperative. Lower scores mean less patient attraction since performance data is published!
chess pieces, winners and losers
How to Start for Quick, Foundational and High Results?
gear wheel
Increase Value Based Purchasing Revenue by 8% to 50%
Increase Net Adjusted Revenue Recovery by .7% to 3%
Increase Workforce Productivity by up to 2.1% without Increasing Labor Costs
Reduce Labor Costs by  up to 3.3% without Reducing Workforce Productivity
HealthViZion Correlative Impact of the Workforce in the Era of Value Based Care and Performance
  • The largest budgetary item for hospitals is labor, accounting for 63% of budget on average
  • The workforce in hospitals has more direct hands-on impact than any other driver of success or failure of Value Based Care and Performance
  • Yet so little is scientifically known, most hidden, about the impact of the workforce on successful outcomes, revenue generation and costs
  • Ironically in an industry driven by data and intelligence of what cannot been seen
doctors operating
With SonarViZion Hospital Big Data Cognitive Learning, Correlation and Impact Systems, Executives now see what was previously hidden, see the impact, measure Mitigate and Optimize.