tci Medicare Compliance & Reimbursement - 2003 Issue 13

Reimbursement: ROCKY REIMBURSEMENT ROAD AHEAD FOR PHYSICIANS, HOSPITALS

Physicians aren't getting much opportunity to celebrate this year's Medicare reimbursement increase. At a March 17 Centers for Medicare & Medicaid Services "open door" forum, Administrator Tom Scully warned of future pay cuts. The biggest factor, according to Scully: Physicians responded to last year's negative 5.4 percent update by "jacking up the volume of services" to the tune of a "stunning" eight percent volume growth. At a March 20 congressional hearing, the CMS chief said the volume increase sent Medicare physician spending up seven percent, higher than it would have been had physicians received the pay increase that...

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