Value-Based Purchasing (VBP)

Developing a statewide approach to payment reform using value-based purchasing (VBP) continues to be a goal of the Iowa State Innovation Model (SIM) program. Aligning payment reform initiatives across payers ensure that the delivery system is engaged and working in the same direction for their entire panel of patients. This payment alignment helps providers reach the scale necessary for transformation. This VBP approach is the foundation for developing sustainable change of the Iowa health care system. 
  1. Improve Population Health
  2. Transform Health Care
  3. Promote Sustainability
News and Announcements
  • SIM Value-Based Purchasing (VBP) Partner Update: The Partner Update is a monthly communications effort designed to share pertinent and important information that is specific to Iowa efforts to implement value-based purchasing in Iowa and specifically within Medicaid. Read the April 2016 issue. You may also access previous issues of the monthly partner update.

Secondary Drivers for Value-Based Purchasing (VBP)
Linking provider payment to improved performance by health care providers is called Value-Based Purchasing or VBP. This form of payment holds health care providers accountable for both the cost and quality of care they provide. It attempts to reduce inappropriate care and to identify and reward the best-performing providers, in a way consistent with overarching goals announced by U.S. Department of Health and Human Services on January 26, 2015. VBP is a driver to improve all three state aims, but mainly, it helps promote sustainability within our health care system and can be linked to the goal of increasing VBP payments in Iowa. VBP is also a key strategy specific to how Medicaid is implementing Managed Care. The SIM grant enables Iowa to focus on the implementation of VBP in Medicaid through the MCOs and also on how the Medicaid implementation of MCOs fits into the larger health care market in Iowa.

  1. Align payers in value reimbursement and quality strategies
  2. Implement VBP into the new managed care system in Medicaid

Information Resources


Partner Websites