Last month, the Michigan Value Collaborative (MVC) distributed final scorecards for Program Year (PY) 2025 of the MVC Component of the Blue Cross Blue Shield of Michigan (BCBSM) Pay-for-Performance (P4P) Program. This report provided hospitals with their final scores for PY 2025 as well as detailed breakdowns by scoring components. It also included a preview of measure scoring for the new health outcome variation measure that will be worth one point in PYs 2026-2027.
Each hospital received a final score out of a total of 10 points, including 0 to 4 points for their selected total episode payment metric, 0 to 4 points for their selected value metric, and 0 to 2 points for completed eligible engagement activities. PY 2025 scored each participating hospital’s achievement and improvement for selected episode spending conditions and value metrics using index admissions from 2024 performance year data against 2022 baseline year data. Hospitals were awarded the higher of their achievement or improvement point scores.
Figure 1 illustrates the distribution of total points out of 10 across the collaborative. The average points scored across the final scorecards was 6.7 out of 10. This average is 0.1 higher than the average points scored at the conclusion of PY 2024.
Figure 1. Distribution of Hospital Total Point Scores for PY 2025
Figure 2 illustrates the breakdown of scoring on average by each program component (i.e., episode spending metric, value metric, engagement points). Hospitals could earn up to four points for their episode spending and value metric selections, and up to two points for engagement activities completed in 2025. Across the collaborative, hospitals scored an average of 2.2 points for episode spending, 2.6 points for value metrics, and 1.8 points for engagement activities.
Figure 2. Average Points Earned in PY 2025 by Scoring Component
Figure 3 illustrates the breakdown of the average points by episode spending conditions. The highest scoring episode spending condition was coronary artery bypass grafting (CABG) with an average of 2.9 points, and this was followed by joint replacement with 2.5 points. Conditions that hospitals scored less than 2 points on episode spending on average were congestive heart failure and pneumonia with 1.7 and 1.5 points respectively.
Figure 3. Average Points Earned Out of Four in PY 2025 by Episode Spending Condition
Figure 4 illustrates the breakdown of average points by value metrics. Consistent with PY 2024, the highest scoring value metric was preoperative testing with 3.7 points. This was followed by 90-day cardiac rehab after PCI and 7-day follow up after CHF, both with an average score of 2.7 points. The lowest scoring value metric was 7-day follow up after pneumonia and follows the same trend as that of PY 2024 with 2 points.
Figure 4. Average Points Earned Out of Four in PY 2025 by Value Metric
Figure 5 shows the distribution of engagement points earned out of a maximum of 2 across the collaborative. Notably, about 70% of the participating hospitals earned both engagement points in PY 2025.
Figure 5. Distribution of Engagement Points Earned by Hospitals in PY 2025
This is the second year of a two-year (PY 24-25) P4P cycle. The full methodology for this program cycle can be found in the PY2024-2025 technical document [PDF].
In addition to the PY 2025 final scorecard summary, this report also included a preview of the new health outcome variation measure scoring, which will be worth one point in PY 2026-2027 (Figure 6). The table presents the hospital’s payer-specific risk-adjusted readmission rates in the performance year, the baseline and performance indexes for the hospital, and the target indexes required to score a point via improvement or achievement. This table’s scoring is based on PY 2025 data (i.e., 2024 performance year data and 2022 baseline data). When used in conjunction with other previously shared reports (e.g., the health outcome variation measure push report), hospitals can view performance trends over time on this measure. MVC has also recently prepared custom report requests for members on their HOV performance.
Please note that this table was included to help orient members with the scoring methodology for this new measure and did not impact PY 2025 scores. For detailed information about this measure, hospitals can watch an MVC introductory video to the HOV measure and refer to the PY 2026-2027 P4P technical document.
Figure 6. Sample Scoring of New Health Outcome Variation Measure
If you have any questions regarding PY 2025 of the MVC Component of the BCBSM P4P Program, please refer to the MVC P4P PY 2024-2025 Technical Document. You can also contact the MVC Coordinating Center for a walkthrough of your hospital’s PY 2025 final scorecard or P4P registry reports. MVC will evaluate and release mid-year scorecards for PY 2026 in Q3 of 2026.
