Value-Based Payment Modifier
October 8, 2014

The “Avoidable Admissions” Pitfall: What Your Physicians Must Know to Avoid Medicare Penalties

Hospital and physician groups, take note: If you’re admitting patients to hospitals for complications that could have been prevented by better outpatient care, your Medicare revenues are in jeopardy. Under the 2014 Value Based Payment Modifier (VBPM) formula, groups that admit more patients for conditions classified as “avoidable” will risk penalties if their admissions are higher than similar sized groups, and reap rewards if admissions are lower. ACOs have similar reward structures associated with their hospital costs; in 2015, groups participating in ACOs will also bear risk under the VBPM. This is one of the ways that Medicare is instilling…
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