Thursday, June 2, 2011

Medicare Must Fix Geographic Payment System, IOM Report Says

June 1, 2011 — Physician and hospital groups have long complained that they are short-changed by geographic adjustments to Medicare payments that do not accurately reflect their costs of doing business. In a new report, the Institute of Medicine (IOM) today called for fundamental changes in the way the Centers for Medicare and Medicaid Services calculates the adjustments.
Almost 40% of hospitals have been granted exemptions to how their adjustments are calculated, strongly suggesting that the methods for determining how the same procedures or services are paid differently throughout the country are inadequate, notes the committee that wrote the report, titled "Geographic Adjustment in Medicare Payment: Phase 1: Improving Accuracy."

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