The Obama administration is taking another step in its goal ofreforming how doctors arecompensated by Medicare.

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On Wednesday the Department of Health and Human Services (HHS)put forth a proposed rule to implement new outcome-based paymentsystems that were authorized by the Medicare Access and CHIPReauthorization Act of 2015.

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While there are already a number of ways that Medicare assesses the value ofcare provided by doctors, hospitals, and clinics, the greatmajority of payments are tied to services rather than outcomes.

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The new rule seeks to bring all providers under one of twovalue-based systems: The Merit-based Incentive Payment System(MIPS) or Advanced Alternative Payment Models (AAPM).

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MIPS would tie payments to a score providers earn based on anumber of performance measures.

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Half of the score would be tied to the quality of care, whichitself would be based on six different metrics, depending on themedical specialty. One common metric for evaluating quality is therate at which patients are readmitted to the hospital within amonth of an operation.

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MIPS would also credit providers for adopting new technology,reducing costs, and making various improvements to theirpractice.

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The AAPMs are intended for providers that come up with analternative to the current fee-for-service model and the MIPSframework. Medicare is thus allowing providers to propose their ownalternative payment models tailored to their specialties andpractices if they can show that the model is superior to the statusquo.

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Now that HHS has submitted the rule, the public has until June26 to provide comments in response.

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“We have more work to do, but we are committed to implementingthis important legislation and creating a health care system thatworks better for doctors, patients, and taxpayers alike,” said HHSSecretary Sylvia Burwell in a statement. “We look forward tolistening and learning from the public on our proposal for how toadvance that goal.”

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