MedPAC Report Ponders Ways to Improve Quality, Lower Costs

The Medicare Payment Advisory Commission's new report to Congress discussed several ways to improve quality and lower costs in the Medicare program.


MedPAC considered the following policy changes without definitely proposing them at this time, noting more study is needed.

Quality improvement

•  Enhance Quality Improvement Organization's new effort to assist providers who are low performers in quality measures.
• Direct low performers to get remedial help from private entities, such as high-performing providers, professional associations and consulting organizations.
• Change Medicare conditions of participation to include minimum standards that must be met by certain kinds of providers in order to be eligible for Medicare payments.
  

Financing graduate medical education

•  Medicare funding to hospitals for residency programs would vary by specialty, taking into account that some specialties may require greater supervision costs and others may attract higher volumes of profitable services
  
  

Growth of ancillary services in physicians’ offices.

• Wait for new methods of financing under healthcare reform, which  are expected to dampen physician self-referral of ancillary services. For example, a bundled payment for an episode of care, would incentivize physicians to refrain from ordering unnecessary services.
• Consider tightening the in-office ancillary services exception to the Stark law, such as not allowing selected in-office services, limiting the exception to clinically integrated practices or excluding diagnostic tests not usually provided in an office visit from the exception.

Read MedPAC's report on Medicare policies.

Read some of Becker's past stories on this topic

Healthcare Reform: A Brief Analysis on How it Impacts ASCs and Physician-Owned Hospitals - 10 Observations

MedPAC Proposes Increases for Hospitals, Physicians; 0.6% Payment Increase for ASCs

Former MedPAC Member Says Cutting Costs Crucial for Health Reform

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