In November 2024, the MVC team distributed selection reports to eligible hospitals for Program Years (PY) 2026-2027 for the MVC Component of the Blue Cross Blue Shield of Michigan (BCBSM) Pay-for-Performance (P4P) Program. These reports were provided in conjunction with details pertaining to the selection process as well as changes to the program structure, scoring methodology, and cohort assignments for the upcoming two-year cycle.
All eligible hospitals returned their selections by the December 2024 deadline, and are now treating the patients who will make up their performance year data for PY 2026 of the new cycle. The program cycle will award a maximum of 10 points, made up of a maximum of three points from their selected episode spending metric, a maximum of four points from their selected value metric, a maximum of two points for engagement activities completed in calendar year 2026, and a maximum of one point for the health equity measure (a new component). Please refer to the previous blog about program structure changes for PYs 2026-2027 for more detail.
Each participating hospital selected one of the four available conditions for 30-day episode spending: chronic obstructive pulmonary disease (COPD), congestive heart failure (CHF), coronary artery bypass graft (CABG), and percutaneous coronary intervention (PCI). See Figure 1 for a description of the total selections for each episode spending condition. The episode spending metric that most hospitals selected was CHF (32), followed by COPD (16). The number of sites selecting CHF for episode spending in PYs 2026-2027 increased from 21 to 32 compared to PYs 2024-2025; selections for COPD doubled from 8 to 16 compared to PYs 2024-2025. Figure 2 shows that the distribution in episode spending selections varied when stratified by MVC regions of Michigan. However, CHF was the most selected condition within all regions.
Each participating hospital also selected one of the seven available value metrics for evaluation based on rates of utilization: cardiac rehabilitation after CABG, cardiac rehabilitation after PCI, 7-day follow-up after CHF, 14-day follow-up after COPD, 7-day follow-up after pneumonia, 14-day follow-up after sepsis, and preoperative testing. Figure 3 illustrates that the value metric selected by the most hospital members was the newly introduced 14-day follow-up after sepsis metric (19) and this was followed by cardiac rehabilitation after PCI (16). Both of these metrics align with the work and measures used at peer CQIs (HMS and BMC2, respectively). Compared to selections from the previous PY 2024-2025 cycle, the number of hospitals that selected preoperative testing doubled from 6 to 13, while selections for 7-day follow-up after CHF decreased from 24 to 15. None of the hospitals selected 7-day follow-up after pneumonia, and the number of hospitals that chose cardiac rehabilitation value metrics did not change much between program cycles.
As seen in Figure 4, there was variation in the distribution of value metric selections by MVC region. Regions 1 & 3 observed similar trends with 14-day follow-up after sepsis selected the most and cardiac rehabilitation after CABG selected by none of the sites. Cardiac rehabilitation after PCI was the most selected value metric in region 4, followed by preoperative testing. In region 2, both preoperative testing and 7-day follow-up after CHF were the most selected value metrics.
Brand new in PYs 2026-2027 will be the health equity measure, for which all participating hospitals will be evaluated using an index of disparity that indicates the magnitude of payer-specific differences in risk-adjusted all-cause readmission rates within a hospital. P4P cohorts were reassigned for PYs 2026-2027. Those cohort assignments and the new technical document have been published on the MVC website’s P4P page. The cohorts were not intended to group hospitals alike; rather, they create a reasonably comparable grouping from which MVC can complete statistical analysis.
MVC’s P4P measure began in 2018 when BCBSM allocated 10% of its P4P program to an episode of care spending metric based on MVC data. If you have questions about any aspect of the MVC Component of the BCBSM P4P Program, please contact the MVC Coordinating Center.