Humana launches national value-based hospital incentive program

Humana will now reimburse hospitals based on quality improvement and performance metrics under a new program it revealed April 25.

The insurer's national Hospital Incentive Program, effective Jan. 1, 2018, pertains to hospitals treating Humana's commercial members. The program will compensate hospitals based on three key areas: patient experience, patient safety and patient outcomes.

It will also use seven measures like healthcare-associated infection rates, care coordination, palliative care and more to determine performance. The metrics incorporate two care certification programs developed by The Joint Commission.

Ben Lunsford, vice president of value-based strategies at Humana, told Becker's via email "HIP provides hospitals with an opportunity to participate in a value-based program that recognizes a hospital's continuous patient improvement efforts via earned annual rate increases." Earned annual rate increases are based on hospital performance across the previously stated three key areas.

Humana said it will make a separate announcement soon about how many hospitals are participating in the program.

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