The Centers for Medicare and Medicaid Services (CMS) has changed the method for reimbursing inpatient stays for fiscal year (FY) 2007. It is the first significant change in the reimbursement system since it was first implemented in 1983. The revised payments became effective for discharges on or after October 1st.
The goal, according to CMS, is to improve the accuracy of Medicare’s payment for inpatient stays. The payment reforms, which will be phased in over time, align hospital payments more closely with the costs of a patient’s care by using hospital costs rather than charges, and by accounting more fully for the severity of the patient’s condition.
Medicare’s inpatient rates for operating expenses will increase by 3.4 percent in FY 2007 for those hospitals that report quality data to CMS. Overall, the changes are estimated to increase payments to acute care hospitals by $3.4 billion.
Looking for a comprehensive summary of the changes?
Join the reimbursement experts of BESLER Consulting, a leading advisory firm in healthcare financial management and operations, to get a better understanding of the new Medicare methodology and how it will affect your organization in this special 90-minute audio conference on CD-ROM. The live conference took place on October 19, 2006.Order Today!
The payment reforms consist of two major parts. The first part begins a transition to using estimated hospital costs, rather than list charges, to set payment. The second major part of the payment reforms involves more accurate accounting for the severity of a patient’s illness, which has a significant impact on costs of care, according to CMS.
"These payment reforms respond to many constructive public comments to assure that hospitals get fair and appropriate financial support for all patients, with a smooth and gradual transition to more accurate payments. Hospital payments should promote the best care for all patients, not the treatments that happen to be most profitable, and we are now on a path to making sure that happens," said Department of Health and Human Services Secretary Mike Leavitt.
Listen in to this program for a review of the Medicare inpatient patient payment systems changes for FY 2007affecting acute care hospitals, post acute care, skilled nursing facilities, inpatient psychiatric, partial hospitalization, and Medicare managed care.
Agenda:
- Details on the transition from charge-based to cost-based reimbursement
- Review of specific DRG changes including 20 new groups
- Discussion on key areas of reimbursement, such as wage index (including occupational mix) and IME/GME
- Updates on other health care facility proposed/final regulations
- The financial implications of these changes
- LIVE question and answer session
Who Will Benefit From This Audio Conference?
CEOs, COOs, CFOs, vice president of finance, director of reimbursement, vice president of operations, strategic and implementation consultants, operations executives, executive directors, team leaders, planners, product managers, knowledge managers, department heads, medical directors, director of managed care, director of contracting, network development and provider services directors, strategic planners, healthcare management, TPAs, network managers, physician practice management, company executives, medical management directors, PHO and IPA leadership, analysts, implementer consultants, account services and administration executives.
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