CMS Initiative Will Link Incentives With Reduced Infections, Readmissions
CMS is planning a "major multi-year financial commitment" involving Medicare, Medicaid and private insurers that aims to curb hospital-acquired infections and readmissions, according to a confidential draft of a CMS document, Inside Health Reform reports.
The so-called National Patient Safety Initiative -- which is being developed by CMS' innovation center -- would link $70 billion in Medicare funds across 10 years to hospitals' ability to achieve new standardized performance metrics. Under the plan, 6% of hospitals' Medicare payments will be contingent on reporting errors and meeting safety measures, with the proportion of payments increasing to 9% by 2015.
By hiring state contractors, CMS will develop measures and monitor progress, and then use results to determine payments.
Medicaid and private insurance plans that chose to participate in initiative also will link a larger portion of payments to patient safety goals, affordability and patient-centered care.
The innovation center also will fund studies that aim to determine how to disseminate best practices data, and support states and health systems that develop networked learning projects, Inside Health Reform reports (Inside Health Reform, 1/26).
Initiative Heeds Many Employer Wishes
The National Patient Safety Initiative appears to incorporate many suggestions made by large employers, which offered their suggestions during the new plan's development, Inside Health Policy reports.
According to Inside Health Policy, employers support broad standardization of hospital payment and performance measures; however, they seek flexibility to adjust to the needs of different communities.
Meanwhile, employers have expressed concern that Medicare and Medicaid changes could shift care costs onto private payers, and the draft plan aims to align the public and private sectors (Inside Health Policy, 1/27).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.