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MedPAC Offers DSH, 340B Recommendations

The Medicare Payment Advisory Commission has recommended that Congress direct changes in the 340B prescription drug discount program and in the manner in which Medicare makes disproportionate share hospital payments (Medicare DSH).
In its annual report to Congress, MedPAC recommended a reduction in 340B prescription drug payments to hospitals. The proposed reduction would cut 340B program spending approximately $300 million.
medpac-dataMedPAC then recommended that those 340B savings be redirected to the Medicare DSH uncompensated care pool.
And it also called for distributing the money in that pool based on better data on the uncompensated care hospitals provide, as reported on hospitals’ Medicare cost report S-10 worksheets, so that the Medicare DSH uncompensated care program would “…better target additional payments to hospitals that provide above average shares of uncompensated care.”
Most Pennsylvania safety-net hospitals participate in both the 340B and Medicaid DSH programs.
To learn more about these and other MedPAC recommendations, see the news release that accompanied the MedPAC report to Congress; a fact sheet on that report; and the report itself.

2016-03-23T06:00:39+00:00March 23rd, 2016|Medicare|Comments Off on MedPAC Offers DSH, 340B Recommendations

MACPAC Unhappy With How DSH is Dished

Medicaid disproportionate share hospital payments (Medicaid DSH) are not getting to the hospitals that need them most, according to the independent agency that advises Congress and the administration on Medicaid access, payment, and care delivery issues.
In its March 2016 Report to Congress on Medicaid and CHIP, the Medicaid and CHIP Payment and Access Commission found

…little meaningful relationship between DSH allotments and three aspects of DSH payments that Congress asked us to study: 1) the relationship of state DSH allotments to data relating to changes in the number of uninsured individuals, 2) data relating to the amount and sources of hospitals’ uncompensated care costs, and 3) data identifying hospitals with high levels of uncompensated care that also provide access to essential community services for low-income, uninsured, and vulnerable populations.

macpacMACPAC also observed that

Although early reports suggest that the coverage expansions are improving hospital finances in general, it is not yet clear how hospitals that are particularly reliant on Medicaid DSH payments are being affected.

MACPAC further maintains that

…DSH allotments and payments should be better targeted, consistent with their original statutory intent.

Noting an obstacle to such an undertaking, MACPAC

…recommends that the Secretary [of Health and Human Services] collect and report hospital-specific data on all types of Medicaid payments for all hospitals that receive them. In addition, the Secretary should collect and report data on the sources of non-federal share necessary to determine net Medicaid payment at the provider level.

Finally, MACPAC promises to continue looking into this challenge and exploring possible solutions.

In future reports on DSH payment policy, which MACPAC will include in its annual March reports to Congress, the Commission will continue to monitor the ACA’s effect on hospitals receiving DSH payments. We also plan to explore potential approaches to improving targeting of federal Medicaid DSH funding, including modifying the criteria for DSH payment eligibility, redefining uncompensated care for Medicaid DSH purposes, and rebasing states DSH allotments.

To learn more about what MACPAC had to say about Medicaid DSH and other Medicaid- and CHIP-related issues, go here to see the MACPAC report March 2016 Report to Congress on Medicaid and CHIP.

2016-03-21T06:00:56+00:00March 21st, 2016|Affordable Care Act, Medicaid supplemental payments|Comments Off on MACPAC Unhappy With How DSH is Dished

Hospitals Failing to Prevent Avoidable Readmissions

Hospitals continue to fail to prevent many avoidable readmissions, a new study in JAMA Internal Medicine has concluded.
Among the causes? Patients who shouldn’t have been admitted through the ER in the first place, post-discharge instructions written at too high a level for patients, failure of patients to keep follow-up appointments, and hospitals discharging patients too soon.
jama internal medicineTwo of those causes – hard-to-understand discharge instructions and difficulty keeping follow-up appointments – as problems that are especially prevalent within the kinds of communities served by Pennsylvania’s safety-net hospitals.
In all, the study of 12 academic medical centers concluded that 15 percent of readmissions were preventable, 12 percent were likely unpreventable, and there was about a 50 percent chance of preventing another 15 percent of readmissions.
For a look at the problems the study identified and its recommendations for addressing them, go here to see the JAMA Internal Medicine article “Preventability and Causes of Readmissions in a National Cohort of General Medicine Patients.”

2016-03-17T06:00:09+00:00March 17th, 2016|Uncategorized|Comments Off on Hospitals Failing to Prevent Avoidable Readmissions

IOM Weighs in on Social Determinants Training

If patients’ symptoms and conditions are the product of who they are, where they are from, and how they have lived, can better understanding those circumstances help providers serve those patients more effectively?
Increasingly the answer to that question has been yes, it can, and now, the National Academies of Science, Engineering, and Medicine and the Institute of Medicine have proposed an approach to training caregivers on the social determinants of health. Their new publication, A Framework for Educating Health Professionals to Address the Social Determinants of Health, notes that

The World Health Organization (WHO) defines social determinants of health as “the conditions in which people are born, grow, work, live, and age, and the wider set of forces and systems shaping the conditions of daily life.” These forces and systems include economic policies, development agendas, cultural and social norms, social policies, and political systems. Health inequities, “the unfair and avoidable differences in health between groups of people within countries and between countries” (WHO, 2015b), stem from the social determinants of health and result in stark differences in health and health outcomes. 

frameworkSNAP has long maintained that the socio-economic challenges their patients face – all important social determinants of health – make serving their low-income communities more challenging and more complex than the patients served by the typical community hospital in Pennsylvania today.
The report’s framework addresses such issues as diversity and inclusion, the importance of a diverse workforce, community participation, health professions education, and more. To learn more about how understanding the social determinants of health might lead to better care and healthier populations, go here to see the National Academies of Science, Engineering, and Medicine and the Institute of Medicine publication A Framework for Educating Health Professionals to Address the Social Determinants of Health.

2016-03-15T06:00:32+00:00March 15th, 2016|Safety-Net Association of Pennsylvania, Uncategorized|Comments Off on IOM Weighs in on Social Determinants Training

GAO Looks at Supplemental Medicaid Payments

Following up its own 2012 report that identified more than 500 hospitals receiving supplemental Medicaid payments that resulted in Medicaid payment surpluses, the U.S. Government Accountability Office has taken a broader look at supplemental payments state Medicaid programs make to hospitals and how those payments are used.
gaoIn a limited study of hospitals in four states, GAO found that some hospitals used supplemental payments for purposes other than serving Medicaid patients and the uninsured – purposes such as ordinary operations, capital purchases, a poison control center, even a helicopter. GAO also found that hospitals were more likely to receive such payments if local funding was used to draw down federal Medicaid matching funds. In some places, hospitals with local governments willing to finance the payments were more likely to receive them than hospitals located in places without such local support.
The GAO recommended that the Centers for Medicare & Medicaid Services take stronger steps to ensure that supplemental Medicaid payments are linked to the provision of Medicaid services and that CMS not permit states to make those payments contingent on local financing.
Learn more about why the GAO looked at supplemental Medicaid payments, what it learned, and what it recommended in the report Federal Guidance Needed to Address Concerns About Distribution of Supplemental Payments.

2016-03-09T06:00:15+00:00March 9th, 2016|Uncategorized|Comments Off on GAO Looks at Supplemental Medicaid Payments

Latest Edition of Health Law News

The Pennsylvania Health Law Project has released the latest edition of its newsletter.
phlpThe February edition includes features about Governor Wolf’s proposed FY 2017 Medicaid budget, the launch of a new “fast track” Medicaid enrollment program, the state’s plans for a new approach to providing managed long-term services and supports, and more.
Find the newsletter here.

2016-03-03T06:00:55+00:00March 3rd, 2016|Pennsylvania Medicaid policy, Pennsylvania proposed FY 2017 budget|Comments Off on Latest Edition of Health Law News

SNAP Comments on Balance Billing Proposal

The Safety-Net Association of Pennsylvania has submitted comments to the Pennsylvania Insurance Department addressing that department’s proposed Balance Billing Protection Act.
Safety-Net Association of Pennsylvania logoWhile supporting the concept of addressing the problem of surprise balance billing for insurance-covered medical services, SNAP encouraged the Insurance Department to consider the potential market-influenced conditions that may be leading to balance billing; to foster greater transparency and better communication between consumers, insurers, and providers; to avoid any methodology for resolving reimbursement disputes that favors insurers over providers; and to require hospitals to participate in reimbursement dispute resolution only when hospitals are part of that dispute and not when they are only the site at which the disputed services were delivered.
SNAP also encouraged the Insurance Department to involve the state’s Department of Health in addressing this issue; to seek greater public input; and to look to balance billing efforts elsewhere for guidance.
Find the Pennsylvania Insurance Department’s proposed Balance Billing Protection Act here and read SNAP’s comments on that proposal here.

2016-03-01T11:06:30+00:00March 1st, 2016|Uncategorized|Comments Off on SNAP Comments on Balance Billing Proposal

New Look at Preventive Care

The organization America’s Health Rankings issued a new report documenting the use of preventive health care services across the country.
The organization’s “Spotlight: Prevention”

…takes an in-depth look at the status of clinical disease prevention across the country and the inequities within subpopulations. The aim of this spotlight is to drive awareness and understanding about the roles of key clinical preventive services and interventions—Access to Health Care, Immunizations, and Chronic Disease Prevention—in improving the health of individuals and our communities.

Pennsylvania State MapThe report takes a state-by-state look the use of preventive services in the country today.
Find an introduction to “Spotlight: Prevention” go here and go here for a look at the status of prevention efforts in Pennsylvania based on such factors as patient age, gender, race, education, and income.

2016-02-29T06:00:45+00:00February 29th, 2016|Uncategorized|Comments Off on New Look at Preventive Care

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?
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