598 Apply concepts of financial accounting within the health care industry

Financial Accounting Within the Health Care Industry Student Name Institutional Affiliation Date Financial Accounting Within the Health Care Industry Introduction The Centers for Medicare and Medicaid Services (CMS)’s 2011 implementation of Value-based purchasing (VBP) marked a significant shift in healthcare reimbursement, seeking to reduce the overall payments and ensure quality outcomes and patient satisfaction. VBP links provider payments to improved performance hence rewarding quality and not quantity of healthcare services (CMS.gov, 2023). VBS ensures that providers are accountable for offering high-quality care and hence satisfying the experience of the patients. The Shift in Reimbursement The shift in reimbursement strategy has not been successful. Firstly, the first comprehensive study, first published in 2016 demonstrated that the VBP had no impact on patient outcomes three years after its implementation. Rather than accelerating improvements in patient outcomes, VBP appeared to have no effect or even an adverse one (Figueroa et al., 2016). Secondly, recent studies demonstrate that the implementation of VBP has not improved patient experience. For instance, Chiu, Aggarwal, Song & Wadhera (2022) compared patient-reported experiences before and after the implementation of VBP for safety-net and non-safety-net healthcare facilities. The findings established that safety-net healthcare facilities had lower performance compared to non-safety-net hospitals in all measures of patient experience and satisfaction. The findings confirm that the VBP program is not associated with improved patient outcomes at both safety-net and non-safety-net hospitals. Additionally, shifting funding from poorly-performing healthcare providers, especially those serving poor and minority populations to better-performing providers makes VBP ...