How is value-based pricing scored?

• A. Two Scores: Performance Compared to Other Hospitals, and Improvement in Their Own Performance
• B. A Single Overall Efficiency Score
• C. Patient Satisfaction Index Only
• D. A Budget Neutral Adjustment Index

Answer: (A)

Value-based pricing is scored using two components: how a hospital’s performance compares to other hospitals (benchmarking against peers) and how much the hospital has improved its own performance over time. This dual scoring rewards both strong absolute performance and genuine, ongoing improvement, and it helps level the playing field for facilities starting from different baselines. A single overall efficiency score would oversimplify and could miss important shifts in either relative performance or progress. Focusing only on patient satisfaction or on a budget-neutral adjustment index would neglect either the value delivered or the ongoing improvement that value-based pricing aims to incentivize.