Hospitals to CMS: Don’t penalize us twice

A federal panel charged with making Medicare payment recommendations also backed the hospital group. The Medicare Payment Advisory Commission (MedPAC) said it was concerned about recent studies that indicate the rates of hospital-acquired conditions remain high, but it thinks that hitting hospitals twice for the same goal is unnecessary.

“They are important measures that should be included in one [provision] or the other,” MedPAC wrote.

The nonpartisan Congressional Budget Office said the reform law’s 1
percent reduction in payments for hospitals with high HAC rates, which
takes effect in 2015, would save $1.4 billion through 2019.

The hospital lobby further argued that the current HAC formula used by the Centers for Medicare and Medicaid Services does not accurately measure the problem’s prevalence. The AHA complained the HAC policy only accounts for fee-for-service patients and that Medicare’s data system does not consider the full range of healthcare services provided to the patient.

Groups have until March 8 to file their comments on the proposed rule. CMS Administrator Don Berwick praised the healthcare reform rule when it was announced two months ago.

“Today’s proposal is a huge leap forward in improving the quality and safety of America’s hospitals for both Medicare beneficiaries and all Americans,” Berwick said in a January statement. “The hospital value-based purchasing program will reward hospitals for improving patients’ experiences of care, while making care safer by reducing medical mistakes.”