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More Specific Device Cost Data May Inform Medicare Inpatient Payments In FY 2014

This article was originally published in The Gray Sheet

Executive Summary

CMS says it is finally ready to start relying on a specific cost-report line that it created five years ago for implantable devices, as well as distinct lines for cardiac catheterizations, CT scans and MRIs established more recently, to calculate hospital inpatient payments. It’s a positive for implantables and a negative for advanced imaging payments.

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Cost-Center Controversy: CT, MRI Payments Down In Inpatient Rule

CMS’ decision to rely on data from individual CT and MRI cost centers, rather than from a general radiology line, is derided by imaging equipment makers who say it does not account for the flawed approach employed by some hospitals to report capital equipment costs. Meanwhile, device makers applaud the agency’s application of a specific cost line for implantable devices.

Device Firms Oppose New Imaging Cost Centers For 2014 Medicare Payments

Industry supports CMS’ decision to use specific cost-report lines for implantable devices and cardiac catheterizations, but remains opposed to the proposed cost centers for advanced imaging services.

Reimbursement In Brief

OIG recommends that CMS lower lab-test payment rates and consider instituting copayments. Imaging groups urge Medicare agency to halt charge compression. More reimbursement briefs.

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