Finance & Enjoyment Blog

With the passing of the Health Care Reform Act of 2010, Medicare payments to both inpatient and outpatient facilities have been altered. The theoretical purpose for these changes is to control costs while improving quality of care, which the bill plans to achieve by providing larger payments to facilities that meet the new standards. Effective in 2011, hospitals in counties in the lowest quartile of per capita spending will receive increased Medicare payments.
By 2012, a full productivity reduction is planned to take effect. There also will be an inpatient hospital Value-Based Purchasing program transition in 2013, that must be fully established by 2016. Consequently, also in 2013, there will be reduced payments to hospitals with high admission rates will occur, as well as hospitals that rank in the top quartile of hospital acquired conditions.

For inpatient facilities, a quality reporting program will be established in 2014 that will study the care given to patients. There is a 2% penalty for failing to report.

The reductions to the market basket are:

  • 2010-2011: 0.25%
  • 2012-2013: 0.10%
  • 2014: 0.30%
  • 2015-2016: 0.20%
  • 2017-2019: 0.75%

Posted in Your Financial House »

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