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US device industry concedes initiative in gainsharing arrangements

This article was originally published in Clinica

Executive Summary

The US device industry appears to have lost its battle to stop Congress from sanctioning gainsharing arrangements. As Clinica went to press, the US Senate was poised to vote on a massive deficit reduction package that included a Medicare gainsharing demonstration project at six different sites. The 2006 Deficit Reduction Act would reduce projected spending growth by $40bn over five years out of a projected $12.7 trillion - the first time that Congress has tried to curb escalating budgets under President Bush and healthcare spending is a significant target in the bill.

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