Catalyst for Payment Reform Announces First-Ever National Principles for Value-Based Payment

Media Advisory: Catalyst for Payment Reform Announces First-Ever National Principles
for Value-Based Payment

BERKELEY, CA – May 27, 2025 – Catalyst for Payment Reform (CPR), a national nonprofit organization, has released the first-ever set of national principles for Value-Based Payment (VBP) programs. VBP models represent a growing share of health care spending in the U.S. and it is vital that such programs align with the interests of key stakeholders, including patients, providers, policymakers, and healthcare purchasers. CPR’s principles aim to bring clarity and consistency to the market while supporting innovation. The principles will serve as a reference point for the design, implementation, and evaluation of VBP programs.

Over the past year, CPR has hosted a series of expert and stakeholder discussions to identify and establish best practices for value-based payment program design, implementation, and monitoring. The result is a set of 25 principles organized into six categories: Person-Centeredness, Provider Engagement and Support, Health Equity, Program Design, Purchaser Engagement, and Program Evaluation.

Value-Based Payment models continue to be a focus of health policy leaders. In April, HHS Secretary Robert F. Kennedy Jr. addressed the need to change payment models to better align with quality and value. “We have a healthcare system that reimburses doctors and hospitals for procedures rather than for health outcomes. We have to change that.” Furthermore, the recently released CMS Innovation Center 2025 strategic direction indicates that their “vision is to double down on our commitment to value-based care” and learn from the investment in prior models.

“CPR has been tracking the nation’s progress on payment reform for over a decade, and it’s a natural step for CPR to define payment reform best practices,” said CPR’s Vice President of Policy, Andréa Caballero.

Since 2012, CPR has tracked the growth of value-based payment as a percent of U.S. health care spending. As of 2024, 28.5% of health care payments were through value-based payment models with downside risk. These models influence payment and care delivery across broad sectors of the health care landscape and with the Innovation Center’s vision to focus on accountable care arrangements and downside financial risk, there is a continued need to measure the country’s progress toward value-based care through different payment models.

The American Academy of Family Physicians (AAFP) was among the members of the committee tasked with informing these guidelines. “The AAFP supports the effort to include a diverse range of expert stakeholders in bringing clarity to what “good” looks like in value-based payment.  This list represents an important step in establishing best practices for developing and evaluating value-based payment programs,” said Karen S. Johnson, Ph.D., Vice President, Practice Advancement at American Academy of Family Physicians.

As announced last year, CPR is partnering with URAC, the nation’s most complete health care accreditation organization, to use the new Value-based Payment Principles as a basis for a recognition program for health plans’ VBP efforts. This process could help ensure adherence to core principles and be a lever to spur adoption of key policies

CPR Members and other employers have voiced and shown their support for broader adoption of and access to value-based programs. Purchasers and other stakeholders can show support for health plans and other organizations to follow best practices by clicking here. To receive information about the URAC process and learn how you can be an early adopter, click here.

ABOUT CPR

Catalyst for Payment Reform (CPR) is a national, independent, nonprofit organization with a mission to catalyze employers, public purchasers, policy makers, and others to implement strategies that produce high-quality, low-cost healthcare and improve the functioning of the healthcare marketplace. For over a decade, CPR has championed efforts to rebalance health care market power and hold the delivery system accountable for outcomes, patient experience and affordability. For more information visit catalyze.org and follow us on LinkedIn and X.

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Media contact:

Cary Conway

cary@conwaycommunication.com

972.649.4707