This dataset displays the actual payment adjustment factors to a precision of 9 places to the right of the decimal; whereas, the hospital Percentage Payment Summary Reports display a precision of 10 places to the right of the decimal. Due to the use of a different precision, the last places may vary due to rounding. Hospitals eligible for the Hospital VBP Program will have their payments adjusted in accordance to the full precision of 10 places to the right of the decimal as displayed on their Percentage Payment Summary Reports.
Note: These proposed proxy adjustment factors will not be used to adjust hospital payments. These proposed proxy value-based incentive payment adjustment factors were calculated using the historical baseline and performance periods for the FY 2018 Hospital Value-Based Purchasing (VBP) Program.
These proxy factors were calculated using the December 2016 update to the FY 2016 MedPAR file. The slope of the linear exchange function used to calculate these proxy factors was 3.0692781725, and the estimated amount available for value-based incentive payments to hospitals for FY 2017 is $1.9 billion. It was intended to include an update this data with the Final Rule, to reflect changes based on the March 2017 update to the FY 2016 MedPAR file. The actual value-based incentive payment adjustment factors, exchange function slope, and the estimated amount available for the FY 2018 Hospital VBP Program will be posted in Fall of 2017, as discussed in the FY 2018 IPPS (Inpatient Prospective Payment System)/LTCH PPS proposed rule.