Wednesday, May 17, 2006

CMS interim report to Congress is out


The “INTERIM REPORT TO CONGRESS ON PROGRESS TOWARD IMPLEMENTING THE DRA PROVISION AFFECTING SPECIALTY HOSPITALS” has been released and is available for review at the following site:
[Physician Self Referral - DRA Report to Congress]

This is the report that was to be completed after implementing the Federal Moratorium on specialty hospitals a couple of years ago. Many thought and hoped it would be the end of specialty hospitals and physician investment in these types of entities, but it does not appear to be the case

Everything I have read so far from the articles appear to be very good news for the competing hospitals that are planned in and around Floyd and Clark Counties.

There were 4 recommendations made by the Administrator of CMS to congress. These included:
1) Reform payment rates for inpatient hospital services through diagnosis-related group (DRG) refinements.
2) Reform payment rates for ambulatory surgical centers
3) More closes scrutinize whether specialty hospitals meet the definition of a hospital contained in section 1861(e) of the Social Security Act
4) Review procedures for approval and for participation in Medicare.

The administrator also announced that CMS would consider how EMTALA should apply to specialty hospitals.

Overall, as you read through the articles, CMS admits that defining a particular institution as a “hospital” is difficult when it comes to differentiating one from another. They therefore are making no concrete decision on how to define a specialty hospital and will take each on a case by case basis.

This appears to be another major hurdle overcome by the competing hospitals and places more strain on Floyd.

Will the County Commissioners and Board continue to spend hospital money challenging these legal questions?

Wouldn’t it be better to move forward and try to work harmoniously with the competitors and maybe even offer to help manage any overflow of heart cases etc.?

Continually destroying any possible working relationship because of the shortsightedness of the CEO will be another devastating hurdle to overcome.

When this other hospital comes, there will be a need for overflow of heart cases. They will be referred to Jewish or Floyd depending on relationships established. Without a change at Floyd, our community will once again lose.

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