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Easing the impact; CMS blunts effect of new inpatient PPS.

Publication: Modern Healthcare
Publication Date: 07-AUG-06 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
Byline: Jennifer Lubell

The biggest changes in 20 years to Medicare's system for paying hospitals for inpatient care are expected to reap modest benefits to most hospitals instead of producing the clear-cut winners and losers that were originally projected.

Fears had abounded that the overhauls proposed by the CMS to reconfigure DRGs to the hospital inpatient prospective payment system would result in substantial losses to certain hospitals and the medical device industry.

While it didn't abandon its plans to convert to a system that would use hospital costs rather than charges and account more fully for the severity of a patient's condition, the CMS in the final rule on the inpatient PPS for fiscal 2007 decided to soften the impact of the DRG changes by phasing them in more gradually.

As a result, no hospital should see payment reductions in fiscal 2007 because...



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