tci Medicare Compliance & Reimbursement - 2006 Issue 11

REIMBURSEMENT: MedPAC Report Pins Payment System Flaws On 'Overvalued' Services

Congress must put the brakes on health care spending, and Medicare should lead the way.Payment systems for eight different provider types may begin major reconstruction in 2007--if the Medicare Payment Advisory Commission has its way.In MedPAC's March 1 Report to the Congress: Medicare Payment Policy, the commission focuses on "improving Medicare payment accuracy and calibrating payment adequacy to the efficient provider." MedPAC defines "efficient providers" in its report as providers who "use fewer inputs to produce quality outputs."The report outlines recommendations for payment system changes that would affect physicians, inpatient hospitals, outpatient hospitals, dialysis, skilled...

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