Annual payment updates for hospitals that do not successfully participate in the Hospital IQR program are reduced by 2.0 percentage points, and starting with FY 2015, hospitals that do not participate in the Hospital IQR Program will lose one-quarter of the percentage increase in their payment updates.  The number of quality measures hospitals are required to report under the Reporting Hospital Quality Data for Annual Payment Update is reduced under the Final Rule from 59 to 57 measures for FY 2015 and FY 2016.

Measures reported under the Hospital IQR Progam are published on the Hospital Compare Website, and may later be adopted for use in the Hospital VBP Program.  For the FY 2016 payment determination and later years, the Final Rule eliminates seven hospital IQR measures and will suspend one measure.  The rule also implements changes to the Medicare Electronic Health Record (EHR) Incentive Program including an expansion of the submission period for reporting clinical quality measures electronically.