July 1 marks the formal start of the new Medicaid Value-Based Purchasing (VBP) Program. The program is replacing the value of the $15 per day Medicaid add-on provided during the pandemic with metric and non-metric-based payments.

The recently passed state budget directs DMAS to issue payment for the non-metric passed portion of the VBP Program funding as a rate add-on beginning on July 1. VHCA advocated for this approach over DMAS’s earlier proposal to provide a lump sum payment.

In the first year of the program, funds will be split evenly between Performance Measure Payments and Quality of Care Investment Payments. The VBP Program encourages facilities to meet program thresholds for two staffing and four quality metrics for enhanced quality of care. Review the SFY 2023 Nursing Facility Value-Based Purchasing Methodology for full details.

Additional Information

• DMAS VBP webpage (Scroll to the “Nursing Facility Value-Based Purchasing Program” section at the bottom of the page.)
• Medicaid VBP Update: Upcoming Implementation and RN Measure (June 9, 2022)
• Emerging Details on VBP Program, Measurement Period Already Underway (December 2, 2021)