Section 3006

SEC. 3006. PLANS FOR A VALUE-BASED PURCHASING PROGRAM FOR SKILLED NURSING FACILITIES AND HOME HEALTH AGENCIES.

[a] Skilled Nursing Facilities-

[1] IN GENERAL- The Secretary of Health and Human Services [in this section referred to as the 'Secretary'] shall develop a plan to implement a value-based purchasing program for payments under the Medicare program under title XVIII of the Social Security Act for skilled nursing facilities [as defined in section 1819[a] of such Act [42 U.S.C. 1395i-3[a]]].

[2] DETAILS- In developing the plan under paragraph [1], the Secretary shall consider the following issues:

[A] The ongoing development, selection, and modification process for measures [including under section 1890 of the Social Security Act [42 U.S.C. 1395aaa] and section 1890A such Act, as added by section 3014], to the extent feasible and practicable, of all dimensions of quality and efficiency in skilled nursing facilities.

[i] IN GENERAL- Subject to clause [ii], any measure specified by the Secretary under subparagraph [A][iii] must have been endorsed by the entity with a contract under section 1890[a].

[ii] EXCEPTION- In the case of a specified area or medical topic determined appropriate by the Secretary for which a feasible and practical measure has not been endorsed by the entity with a contract under section 1890[a], the Secretary may specify a measure that is not so endorsed as long as due consideration is given to measures that have been endorsed or adopted by a consensus organization identified by the Secretary.

[B] The reporting, collection, and validation of quality data.

[C] The structure of value-based payment adjustments, including the determination of thresholds or improvements in quality that would substantiate a payment adjustment, the size of such payments, and the sources of funding for the value-based bonus payments.

[D] Methods for the public disclosure of information on the performance of skilled nursing facilities.

[E] Any other issues determined appropriate by the Secretary.

[3] CONSULTATION- In developing the plan under paragraph [1], the Secretary shall--

[A] consult with relevant affected parties; and

[B] consider experience with such demonstrations that the Secretary determines are relevant to the value-based purchasing program described in paragraph [1].

[4] REPORT TO CONGRESS- Not later than October 1, 2011, the Secretary shall submit to Congress a report containing the plan developed under paragraph [1].

[b] Home Health Agencies-

[1] IN GENERAL- The Secretary of Health and Human Services [in this section referred to as the 'Secretary'] shall develop a plan to implement a value-based purchasing program for payments under the Medicare program under title XVIII of the Social Security Act for home health agencies [as defined in section 1861[o] of such Act [42 U.S.C. 1395x[o]]].

[2] DETAILS- In developing the plan under paragraph [1], the Secretary shall consider the following issues:

[A] The ongoing development, selection, and modification process for measures [including under section 1890 of the Social Security Act [42 U.S.C. 1395aaa] and section 1890A such Act, as added by section 3014], to the extent feasible and practicable, of all dimensions of quality and efficiency in home health agencies.

[B] The reporting, collection, and validation of quality data.

[C] The structure of value-based payment adjustments, including the determination of thresholds or improvements in quality that would substantiate a payment adjustment, the size of such payments, and the sources of funding for the value-based bonus payments.

[D] Methods for the public disclosure of information on the performance of home health agencies.

[E] Any other issues determined appropriate by the Secretary.

[3] CONSULTATION- In developing the plan under paragraph [1], the Secretary shall--

[A] consult with relevant affected parties; and

[B] consider experience with such demonstrations that the Secretary determines are relevant to the value-based purchasing program described in paragraph [1].

[4] REPORT TO CONGRESS- Not later than October 1, 2011, the Secretary shall submit to Congress a report containing the plan developed under paragraph [1].