In what is being billed as an important step away from the fee-for-service health care system, the Obama administration announced an outcome-based measure of compensating medical providers for performing hip or knee replacements on Medicare patients. 

The new policy, which will take effect in April, will pay hospitals more for positive outcomes after joint replacements. And the federal government will demand money back in the case of unsatisfactory results, including infections or implant failures. 

In a statement justifying the new policy, the Department of Health and Human Services and the Centers for Medicare and Medicaid Services described the current payment model as one that failed to hold consistent poor performers accountable. Patients at some hospitals experience complications three times more than those at other hospitals, said the statement. 

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.