GAO Report: Medicare Pays Dedicated Cancer Centers More Than Local Teaching Hospitals

Medicare could be overpaying certain cancer hospitals based on the false belief that such hospitals treat sicker patients, according to a recent Government Accountability Office report. According to the report, inpatient service payments for the dedicated cancer centers in 2012 were on average 42% higher than what would have been paid to local teaching hospitals, while outpatient service payments were on average 37% higher. As a result, Medicare could have saved nearly $500 million annually had beneficiaries received such services at local teaching facilities, according to the report.

• "Medicare Overpays Dedicated Cancer Centers, GAO Finds" (Rubenfire, Modern Healthcare, 3/24).