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Beginning as early as 2009, Texas began to put the antecedents in place for an effective Medicaid value-based purchasing model. Since those early activities were undertaken, Texas Medicaid is emerging as a national leader in value-based purchasing and has produced exceptional results that clearly demonstrate the value proposition associated with alignment of financial incentives. This article presents several years of data and preliminary results of this effort. This study found significant improvements in a number of outcomes. Further improvement will depend on implementation of financial incentives and ongoing commitment to paying for better outcomes. This ongoing commitment includes many additional programs that hospitals, in particular, have put in place such as improved handwashing techniques.

Achieving Improved Outcomes Through Value-Based Purchasing in One State