by Playfuls Staff |
2nd August 2006
U.S. hospitals and medical device manufacturers say the government's revamping of Medicare's hospital payments was less draconian than they had feared.[more]
However, under the new system that becomes effective Oct. 1, payments for some specialized operations such as heart surgeries will be reduced as the government shifts money to fund treatments, such as pneumonia, it believes are underpaid, The Wall Street Journal reported Wednesday.
Some hospital payments will be adjusted based on severity of illness under the new system, with additional modifications to be added based on government studies and public comments, the Journal said.
Mark McClellan, the administrator of the Centers for Medicare and Medicaid Services, said the revisions -- the most substantial in more than 20 years -- are not designed to save money.
Instead, he said the changes are aimed at eliminating some practices such ordering patient treatment based on profitability instead of medical need.
McClellan said his agency addressed hospital fears by reducing the payment cuts that were initially proposed and extending implementation from one to three years.
Medicare is the nation's largest insurance operation, paying the nation's 5,000 hospitals $125 billion for patient care annually, the Journal noted.
© 2006 UPI
