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Senate, House Members Weigh In On Delay Of Inpatient Payment Overhaul

This article was originally published in The Gray Sheet

Executive Summary

Device makers hope Senate Finance Committee Chair Charles Grassley (R-Iowa) can sway CMS to delay overhaul of inpatient payments until fiscal year 2008 with his long-awaited comments to the agency

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McClellan on inpatient rule

"We are acutely aware of the disruptions that could occur if major changes are made too quickly or inappropriately," writes CMS Administrator Mark McClellan in a July 20 letter to Sen. Rick Santorum (R-Pa.). He notes that the final inpatient payment system rule, due out Aug. 1, "will reflect modifications as appropriate to achieve the goal of smooth and effective implementation." The letter is in response to comments signed by 53 senators and 189 representatives urging a one-year delay to proposed changes to the system that would switch to cost-based payments and adjust diagnosis-related groups for illness severity (1"The Gray Sheet" July 17, 2006, p. 6)...

McClellan on inpatient rule

"We are acutely aware of the disruptions that could occur if major changes are made too quickly or inappropriately," writes CMS Administrator Mark McClellan in a July 20 letter to Sen. Rick Santorum (R-Pa.). He notes that the final inpatient payment system rule, due out Aug. 1, "will reflect modifications as appropriate to achieve the goal of smooth and effective implementation." The letter is in response to comments signed by 53 senators and 189 representatives urging a one-year delay to proposed changes to the system that would switch to cost-based payments and adjust diagnosis-related groups for illness severity (1"The Gray Sheet" July 17, 2006, p. 6)...

Rep. Johnson’s Critique Of Inpatient Proposal Mirrors Med-Tech Complaints

A powerful member of Congress added a measure of support last week to the device industry's position that CMS' proposal to change hospital inpatient payments from a charge-based to a cost-based system relies too much on data that serves to penalize new technology

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