MVC Component of the BCBSM P4P Program: PY21 in Review

MVC Component of the BCBSM P4P Program: PY21 in Review

Last month the Michigan Value Collaborative (MVC) Coordinating Center distributed the final scorecards for the 2021 program year of the MVC Component of the Blue Cross Blue Shield of Michigan (BCBSM) Pay-for-Performance (P4P) Program. The 2021 program year was the second year of a two-year cycle for which hospitals were evaluated using MVC data. Hospitals were scored on two conditions that they selected from seven options: chronic obstructive pulmonary disease (COPD), colectomy, congestive heart failure (CHF), coronary artery bypass graft (CABG), joint replacement, pneumonia, and spine surgery. Figure one shows the frequency of hospital condition selections for the two-year program cycle.

Figure 1. Distribution of Hospital Condition Selections for PY21

The MVC Component of the BCBSM P4P Program evaluates each participating hospital’s risk-adjusted, price-standardized, average 30-day episode payments for their two selected conditions through two methods. One way that hospitals earn points is by reducing their payments from the baseline period (which included index admissions in 2018) to the performance period (which included index admissions in 2020). These are termed “improvement points.” Alternatively, hospitals can earn points by being less expensive than the other hospitals in their cohort. These are referred to as “achievement points.” The MVC cohorts are groups of hospitals determined to be peers using bed size, case mix index, and teaching status.

While participants are scored on both improvement and achievement, members receive the higher of the two scores for each condition. Hospitals are also eligible to earn a bonus point for each condition provided all hospitals in their respective cohort who selected the same condition reduced spending by five percent. For the 2021 program year, the Coordinating Center added two additional bonus points that could have been earned by attending both semiannual meetings (one point) and by completing a site visit with MVC in 2021 (one point). A maximum of 10 points were awarded for participating members. Figure 2 shows the distribution of total points earned by hospitals for the 2021 program year.

Figure 2. Distribution of Total P4P Scores for PY21

On average, hospitals earned 6.8 points total, an increase of 1.3 points from the 2020 program year average of 5.5 points. A majority (88%) of hospitals earned at least one of the two possible participation bonus points. In addition, 31 cohort bonus points were distributed within COPD, CHF, and joint replacement. Consistent with previous years, the condition with the highest average point total was joint replacement at 4.5 points with CABG coming in second at 2.9 points (Figure 3).

Figure 3. Average Points by Service Line

When looking at the episode payments behind the point totals, MVC found that hospitals that selected CABG, CHF, and joint replacement saw a decrease in payments from 2018 to 2020 (see Figure 4). Taking into account case counts for all conditions in the baseline year, MVC also found that payments decreased overall for the selected P4P conditions by $7.7 million dollars in program year 2021.

Figure 4. Payment Change by P4P Condition

If you have any questions regarding the MVC Component of the BCBSM P4P Program, please reference the P4P Technical Document for Program Years 2020 and 2021 and the MVC P4P FAQ PY 2020-2021. If you would like to set up a meeting to review your hospital’s performance, please contact the Coordinating Center at michiganvaluecollaborative@gmail.com. The Coordinating Center will be evaluating and releasing a report on the 2020 and 2021 program year cycle later in 2022.


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