Value-Based Purchasing

The federal Centers for Medicare and Medicaid Services (CMS) estimate that about $870 billion of the $2.9 trillion spent on health care nationwide in 2014 was waste resulting from overuse, fraud and abuse. It drives up costs, putting a heavy burden on consumers and employers alike. Major companies, public employers, insurers and medical providers in Washington state are leading an effort to break that logjam, using something called value-based purchasing, in which health care is paid for not by volume but by quality and outcome.