Value-based purchasing (VBP)

The Health Care Authority (HCA) is the largest health care purchaser in the state. We purchase health care for more than 2.5 million Washington residents through our Apple Health (Medicaid), Public Employees Benefits Board (PEBB), and School Employees Benefits Board (SEBB) programs.

HCA is leading the effort to transform health care, helping ensure Washington residents have access to better health and better care at a lower cost. Our vision is to achieve a healthier Washington by containing costs while improving outcomes, patient and provider experience, and equity through innovative VBP strategies.

We call this effort “paying for health and value.” One way we achieve this is through value-based purchasing (VBP).

What's VBP?

VBP is a strategy used to improve the quality and value of health care services a person receives. VBP ensures health plans and health care providers are accountable for providing high-quality, high-value care and a satisfying patient experience. 

VBP uses value-based payment, which is a payment method for providers that rewards providers for the quality of health care, rather than the volume or number of patients a provider sees. (This is called fee-for-service.)


We achieve a healthier Washington by:

  • Aligning Apple Health, PEBB, SEBB, and other programs to a “One HCA” purchasing philosophy.
  • Holding health care plan partners and delivery system networks accountable for providing quality and value.
  • Exercising significant oversight and quality assurance over contracting partners and implementing corrective action, if necessary.
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