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As a major financial reimbursor for health care services in the United States, the Centers for Medicare and Medicaid (CMS), recognizes the escalation of health care costs, poor patient outcomes, health care errors, and waste. As such, CMS posts safety, quality, and patient experience data on the CMS website (www.medicare.gov/hospitalcompare/search.html). CMS created the Centers for Medicare and Medicaid Innovation as part of the Affordable Care Act to enhance the quality of health care and reduce costs through innovative approaches to health care delivery.

CMS ties financial incentives to reliability through pay for performance programs focused on care provided in hospitals, home care, physician practices, and skilled nursing settings (Centers for Medicare and Medicaid Services, 2018a, 2018b, 2018c, 2018d). The three hospital‐based pay for performance programs are the value‐based purchasing (VBP) program, the readmission reduction penalty program, and the hospital‐acquired conditions( HAC) reduction program. Hospitals with better than expected outcomes receive higher reimbursement for patients insured under Medicare, while those with worse than expected outcomes receive lower reimbursements.