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2010 Device DRGs Stable, But Longer-Term Hospital Cuts Could Make A Mark

This article was originally published in The Gray Sheet

Executive Summary

Medical device manufacturers are not expected to take a direct hit from Medicare inpatient hospital payment cuts next year, but possible cuts through 2012 could start to add pressure on manufacturers

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2010 Medicare inpatient rule

In its final rule released July 31, CMS pulled back on an earlier proposal to negatively offset the 2010 hospital inpatient payment update by 1.9%. The proposed offset was intended to correct for what CMS says were Medicare overpayments in 2008, but the agency was convinced that more data was needed to support the change. Device analysts had been concerned that such a cut would have increased pricing pressures on some devices (1"The Gray Sheet" May 11, 2009). In 2010, acute care hospitals will receive a positive payment update of 2.1%

2010 Medicare inpatient rule

In its final rule released July 31, CMS pulled back on an earlier proposal to negatively offset the 2010 hospital inpatient payment update by 1.9%. The proposed offset was intended to correct for what CMS says were Medicare overpayments in 2008, but the agency was convinced that more data was needed to support the change. Device analysts had been concerned that such a cut would have increased pricing pressures on some devices (1"The Gray Sheet" May 11, 2009). In 2010, acute care hospitals will receive a positive payment update of 2.1%

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