AHA announces concerns with Medicare hospital payment change proposal
Case Management Weekly, December 4, 2007
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Last week the American Hospital Association (AHA) responded to CMS' proposed changes in the Medicare hospital payment system by cautioning the changes could create potential financial problems for hospitals.
According to CMS, the proposed changes would reduce payments awarded to hospitals by a flat rate to create an incentive payment pool for hospitals that meet certain quality-of-care thresholds. Under the proposal, payments to all facilities would be cut by 2% to 5% to fund the incentive pool, which would be distributed to hospitals that show the most improvement or meet quality-of-care standards.
The AHA announced its concerns regarding the financial affect of the proposal, noting that the significant cut in hospital payments would add to the financial strain currently afflicting facilities. Furthermore, the AHA suggested a better alternative would be to create a new pool of incentive money, rather than taking it out of much needed funding for hospital improvements.
Source: Medical News Today
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