Note from Hugh
Medicare Weekly Update, August 5, 2008
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As reported below, the big news last week was CMS’s release of the display copy of the Inpatient Prospective Payment System (IPPS) final rule for 2009. As usual, the final rule contains numerous changes relating to coverage, billing and payment for inpatient hospital services. It appears that CMS is continuing to focus heavily on the link between quality and payment. In a CMS press release accompanying the final rule (see link below), CMS emphasized two aspects of the final rule, both relating to quality. First, CMS is continuing to refine the IPPS to limit payment for “never events” (i.e., clinical events which should never occur if appropriate care is being provided). Second, CMS is expanding the number of quality measures that must be reported by hospitals in order to receive the full IPPS payment, from 30 to 42.

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