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Medicare chief wants rewards for successful physicians

Ambulatory Surgery Reimbursement Update, May 31, 2005

The head of the Centers for Medicare & Medicaid Services (CMS) said physicians that help the government save money by preventing illness should receive rewards for their successes, according to The Plain Dealer in Cleveland.

Mark McClellan, MD, the physician in charge of CMS, acknowledged during a visit to the MetroHealth Medical Center that physicians improving their practices and keeping their patients healthy may result in less income because providers make more money treating sick patients.

Healthier patients save the government money, and it's money that McClellan says should be shared with hospitals and doctors helping to keep patients healthy.

"We're going to spend more effort keeping people healthy rather than just pay the bills when something goes wrong," McClellan said, according to The Plain Dealer.

McClellan's words pleased MetroHealth's chief operating officer, John Sideras. In 2004, MetroHealth received nearly 60% of its revenue from CMS, and provided about $125 million in uncompensated care.

"It's encouraging that they're not just thinking of cutting payments," Sideras said, according to The Plain Dealer.

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