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Hospitals Not Using Observation Status to Avoid Readmissions Penalties

Hospitals are not moving returning patients to observation status to avoid incurring financial penalties under Medicare’s hospital readmissions reduction program, according to new study published in the New England Journal of Medicine.
new england journalSince that program’s inception, more than 3300 hospitals have reduced the rate at which they readmit Medicare patients within 30 days of their discharge from the hospital. A moderate increase in the classification of Medicare patients in observation status led some critics to suggest that observation status was being used to avoid penalties for readmissions.
The study disagrees, concluding that

we found a change in the rate of readmissions coincident with the enactment of the ACA, which suggested that the Hospital Readmissions Reduction Program may have had a broad effect on care, especially for targeted conditions. In the long-term follow-up period, readmission rates continued to fall for targeted and nontargeted conditions, but at a slower rate. We did not see large changes in the trends of observation-service use associated with the passage of the ACA, and hospitals with greater reductions in readmission rates were no more likely to increase their observation-service use than other hospitals.

For a closer look at the study, the methodology employed, and its conclusions, go here to see the New England Journal of Medicine article “Readmissions, Observation, and the Hospital Readmissions Reduction Program.” In addition, the U.S. Department of Health and Human Services features a commentary about the study on its blog. Go here to see that commentary, titled “Reducing Avoidable Hospital Readmissions to Create a Better, Safer Health Care System.”

2016-02-26T06:00:17+00:00February 26th, 2016|Health care reform, Medicare, Uncategorized|Comments Off on Hospitals Not Using Observation Status to Avoid Readmissions Penalties

Do Return ER Visits Yield Better Outcomes?

Patients who visit hospital emergency rooms for care, return home, and then return to the ER within 30 days have better outcomes than those who are admitted to the hospital from the ER.
And their care costs less as well.
jama1This according to a new study published in the Journal of the American Medical Association.
What does this mean?
According to the study’s abstract,

These findings suggest that hospital admissions associated with return visits to the ED may not adequately capture deficits in the quality of care delivered during an ED visit.

To learn more about the study and its surprising findings, see this Fierce Healthcare article or go here for a link to the JAMA article “In-Hospital Outcomes and Costs Among Patients Hospitalized During a Return Visit to the Emergency Department.”

2016-02-25T06:00:57+00:00February 25th, 2016|Uncategorized|Comments Off on Do Return ER Visits Yield Better Outcomes?

Cutting ER Visits: Harder Than Expected

The first two years of major expansion of access to health insurance under the Affordable Care Act did not produce the significant reduction in hospital ER visits that many expected.
Or so reports a new study from the Centers for Disease Control and Prevention.
According to the CDC, even though eight million people gained health insurance under the health reform law in 2013 and 2014, ER visit rates changed little.
iStock_000000522737XSmallStill, the CDC survey found some progress: visits among Medicaid patients and the uninsured fell slightly, although Medicaid patents still frequent hospital ERs more than the privately insured.
Among those who did visit the ER, many said their primary care practice was not open at the time or that the ER was the only provider to which they felt they had access to care. In addition, many who made ER return visits reported doing so because of local government reductions of behavior health services options.
Because they are located in low-income communities, Pennsylvania safety-net hospitals typically have far more ER visits than the average hospital.
Learn more about changing rates of ER visits during the first years under the Affordable Care Act in this Fierce Healthcare article or go here to see the CDC report Reasons for Emergency Room Use Among U.S. Adults Aged 18–64: National Health Interview Survey, 2013 and 2014.

2016-02-23T06:00:12+00:00February 23rd, 2016|Pennsylvania safety-net hospitals, Uncategorized|Comments Off on Cutting ER Visits: Harder Than Expected

PA Introduces Improvement to Medicaid Provider Enrollment

The Pennsylvania Department of Human Services has launched a new online portal to facilitate provider enrollment in the state’s Medicaid program.
PA-logoAccording to DHS officials, the new portal will enable the state to enroll providers electronically and automate the provider enrollment process. Under the new approach, documents previously transmitted by mail or fax will be uploaded to the portal, providers will be able to view the status of their application, and the time needed to review and process provider applications will be reduced.
Learn more about the new Medicaid provider portal from this state news release.

2016-02-22T06:00:00+00:00February 22nd, 2016|Pennsylvania Medicaid policy, Pennsylvania Medical Assistance|Comments Off on PA Introduces Improvement to Medicaid Provider Enrollment

DSH/340B Hospitals Have Lower Medicare Drug Costs

Medicare disproportionate share (Medicare DSH) hospitals that qualify for the federal 340B prescription drug discount program have lower Medicare Part B drug costs than other Medicare providers.
So concludes a new study performed for 340B Health, an association that represents more 1100 public and non-profit hospitals and health systems that participate in the 340B drug pricing program.
According to the organization 340B Health,

Medicare pays disproportionate share hospitals in the 340B drug discount program on average 13 percent less for separately payable drugs reimbursed through Medicare Part B. This is in comparison to what it pays other hospitals and physician practices in the Part B market. The study also shows that 340B DSH hospitals are treating more vulnerable patients than other providers in terms of race, age, disability, and dual eligibility.

The study also found that 340B-eligible hospitals are

  • Nearly four times as likely as non-340B providers to treat patients with end-stage renal disease
  • More than twice as likely to treat patients dually eligible for Medicare and Medicaid
  • More than twice as likely to treat patients who are disabled
  • More than twice as likely to treat Black, Hispanic, and North American Native patients

Prescription Medication Spilling From an Open Medicine BottleAll of Pennsylvania’s safety-net hospitals are Medicare DSH hospitals and many participate in the 340B prescription drug pricing program as well.
For a closer look at the study and its findings, go here to see a 340B Health news release on the study and go here to see the study Analysis of Separately Billable Part B Drug Use Among 340B DSH Hospitals and Non-340B Providers.

2016-02-19T06:00:39+00:00February 19th, 2016|Medicare, Pennsylvania safety-net hospitals|Comments Off on DSH/340B Hospitals Have Lower Medicare Drug Costs

GAO Suggests Changes in Federal Medicaid Funding Formula

The U.S. Government Accountability Office has recommended changes in how the federal government matches state Medicaid funding for its share of overall Medicaid spending.
gaoIn testimony submitted to the House Energy and Commerce Committee’s Health Subcommittee, GAO reminded Congress that in the past

…GAO has examined multiple concerns regarding how the FMAP [federal medical assistance formula] allocates funds among states, including during times of economic downturn, and has suggested improvements.

In particular, the GAO is concerned about how the FMAP formula’s use of per capita income in targeting federal Medicaid matching funds may not accurate reflect economic conditions at the state level, especially during economic downturns, and fail to respond to states’ individual needs during those downturns.
In response to these concerns, the GAO suggested

…that Congress could consider an FMAP formula that targets variable state Medicaid needs and provides automatic, timely, and temporary assistance in response to national economic downturns.

For a closer look at what the GAO investigated, what it concluded, and what it recommended to Congress, go here to see the GAO report Medicaid: Changes to Funding Formula Could Improve Allocation of Funds to States.

2016-02-18T06:00:32+00:00February 18th, 2016|Uncategorized|Comments Off on GAO Suggests Changes in Federal Medicaid Funding Formula

Wolf Administration Weighs Addressing Balance Billing

The Wolf administration is floating a proposal that would end medical balance billing in situations in which out-of-network providers are involved in the delivery of care patients receive from providers they believe to be in their health insurer’s provider network.
Such situations typically arise when patients receive inpatient care at hospitals they know to be within their insurer’s provider network but some of the professionals involved in providing that care are not part of that network.
insurance deptThe results can be large bills for services their insurers do not cover.
The Pennsylvania Insurance Department has published draft legislation to address such balance billing and is seeking public comment on the proposal. See that draft legislation here.

2016-02-18T06:00:29+00:00February 18th, 2016|Uncategorized|Comments Off on Wolf Administration Weighs Addressing Balance Billing

Report on One Year of Medicaid Expansion in PA

Taking advantage of the Affordable Care Act, Pennsylvania expanded its Medicaid program a little more than a year ago. Now, Department of Human Services Secretary Ted Dallas reflects on that year, offering statistics on how many people have taken advantage of enhanced access to Medicaid coverage, who those people are, and where they live.
ted dallasSecretary Dallas also offers his perspectives on how the transition to the expanded Medicaid program went and how the new program differs from the old.
Read Secretary Dallas’s report here, on the Wolf administration’s blog.

2016-02-12T06:00:38+00:00February 12th, 2016|Affordable Care Act, Pennsylvania Medicaid policy|Comments Off on Report on One Year of Medicaid Expansion in PA

Governor Proposes FY 2017 Medicaid Budget

On Tuesday, February 9, Pennsylvania Governor Tom Wolf presented his proposed FY 2017 budget to the state legislature.
That budget proposal calls for changes in some current Medicaid spending, including reductions of some supplemental payments and the elimination of others, as well as changes in funding the state’s share of Medicaid and the rate at which the federal government will match Pennsylvania’s own spending on Medicaid in the coming year.
Safety-Net Association of Pennsylvania logoIn addition, the budget calls for new and increased spending in selected areas within the purview of the state’s Department of Human Services and Health Department.
SNAP has prepared a detailed memo outlining the potential implications of the proposed FY 2017 budget for safety-net hospitals. The memo also addresses the complications posed by the state’s incomplete FY 2016 budget. Representatives of safety-net hospitals may request a copy of this memo by using the “contact us” link at the top of this screen.

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