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After Months Of Buildup, Inpatient Proposal Comments Are In

This article was originally published in The Gray Sheet

Executive Summary

CMS' proposal to overhaul the system that pays hospitals for inpatient medical services has triggered a great deal of discussion from the device industry, hospitals and CMS advisors during the past two months. Now stakeholders have detailed their positions on paper - pushing for some significant revisions - to meet the agency's June 12 deadline for formal comments

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Months of heavy lobbying paid off for device firms as CMS significantly moderated its proposed payment cuts for cardiac procedures in the final hospital inpatient payment 1rule

CMS’ Change Of Heart On Inpatient Rule Is Positive News For Cardiac Firms

Months of heavy lobbying paid off for device firms as CMS significantly moderated its proposed payment cuts for cardiac procedures in the final hospital inpatient payment 1rule

GAO reports on inpatient payment method

A July 28 Government Accountability Office report finds that CMS' proposed method to switch to a cost-based payment system "appears promising," though two of the 10 proposed cost centers used in the calculations - therapeutic and operating room services - raise concerns. The report also evaluates applying the outpatient cost-based payment weighting method to the inpatient system, an alternative AdvaMed proposed in its June 9 comments to CMS (1"The Gray Sheet" June 19, 2006, p. 13). GAO says the outpatient methodology "could undermine the objective of better aligning DRG weights with actual costs." The final inpatient rule is slated for release Aug. 1...

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