Three reimbursement changes to watch in 2017

http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/three-reimbursement-changes-watch-2017?cfcache=true&ampGUID=A13E56ED-9529-4BD1-98E9-318F5373C18F&rememberme=1&ts=14122016

By far, the biggest change Health Partners’ Donna Zimmerman sees in terms of reimbursement in 2017 is the increased momentum behind bundled payments for orthopedic care.

Zimmerman“Hospitals need to be prepared for more of this,” says Zimmerman, who is senior vice president of government and community relations at the Bloomington, Minnesota-based nonprofit healthcare provider and payer. That’s because employers are increasingly interested in bundled payments for orthopedic and other types of procedures, and they’re often offering incentives related to bundled episodes of care in benefit plans, she says.

Offering a bundled payment option for a joint replacement, in particular, is getting more common. Even with physical therapy that lasts a few months, these are “fairly discrete episodes of care,” says Zimmerman, who adds that bundled payments are particularly attractive to employers and payers since they allow them to manage the total cost of care.

As a result, provider organizations will need to continue to focus on improving their quality scores, since this is one of the primary ways to distinguish their facilities from competing hospitals. In addition to the total cost of care, Zimmerman highlights that payers will be keeping tabs on providers’ complication rates and will adjust the prices they’re willing to pay providers for bundles of care as a result.

Here’s more on how bundled payments will evolve in 2017, and two other reimbursement changes to watch.

Hospital Observation Care Can Be Costly For Medicare Patients

http://khn.org/news/observation-care-faq/

Image result for hospital observation careImage result for hospital observation care

http://khn.org/news/hospital-surprise-medicares-observation-care/

Some seniors think Medicare made a mistake.  Others are stunned when they find out that being in a hospital even for a couple of days doesn’t always mean they were actually admitted.

Instead, they received observation care, considered by Medicare to be an outpatient service. The observation designation means they can have higher out-of-pocket expenses and fewer Medicare benefits. Yet, a government investigation found that observation patients often have the same health problems as those who are admitted.

Medicare officials are working to finalize a notice that will inform patients that they are receiving observation care. That is required under a federal law that went into effect in August, and hospitals will likely begin using the notices in January. Some states already require that patients be told about their status.

More Medicare beneficiaries are entering hospitals as observation patients every year. The number doubled since 2006 to nearly 1.9 million in 2014, according to figures from the Centers for Medicare & Medicaid Services. At the same time, enrollment in traditional Medicare grew by 5 percent.

Here are some common questions and answers about observation care and the coverage gap that can result. (Seniors enrolled in Medicare Advantage should ask their plans about their observation care rules since they can vary.)

Two-midnight rule coming to an end; hospitals in line for one-time payment

http://www.revenuecycleinsights.com/news/two-midnight-rule-coming-end-hospitals-line-one-time-payment?mkt_tok=eyJpIjoiWldFNU1tWTBaR1JqTXpnNSIsInQiOiJLaDg2S09aMU56ektiYytVNFZKTWduSzlvXC8rSjRreTZzS1h0RWpINzJ6XC8zYjdKbFVOMXIwRXFCQ1RuTVNldVwvaks4YnNNTE9UeVwvMGVKenczVm9WZGRkVlVvWXBWT1BHT08yR0NvVGVqaVE9In0%3D

CMS stands ground on two-midnight hospital pay cut

http://www.healthcaredive.com/news/cms-stands-ground-on-two-midnight-hospital-pay-cut/410057/

CMS delays ‘two midnight’ rule enforcement for another 30 days

http://www.healthcaredive.com/news/cms-delays-two-midnight-rule-enforcement-for-another-30-days/382453/

Observation Status Appeal Advances in Federal Court

http://www.healthleadersmedia.com/content/HEP-312471/Observation-Status-Appeal-Advances-in-Federal-Court