tci Medicare Compliance & Reimbursement - 2005 Issue 5

Hospitals: Specialty Hospital Moratorium May Continue

 MedPAC: DRG scheme still riddled with financial incentives The Medicare Payment Advisory Commission will recommend that Congress extend its moratorium on new physician-owned specialty hospitals  set to expire in June 2005  for 18 months, to Jan. 1, 2007. The extension will give lawmakers and the Department of Health and Human Services time to change hospital payment rules and rules on physician-hospital gainsharing to eliminate incentives for physician owners to skim off lucrative services. Specialty hospitals per se aren't necessarily a problem and in fact might inject a useful dose of competition into local health-care systems, said Commissioners Jan...

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