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FISCAL YEAR 2009 QUALITY MEASURE REPORTING FOR 2010 PAYMENT UPDATE OVERVIEW:
On August 1, 2008, the Centers for Medicare & Medicaid Services (CMS) issued a final regulation that would update payment policies and rates under the hospital inpatient prospective payment system (IPPS) for fiscal year (FY) 2009, beginning for discharges on or after October 1, 2008. The final rule continues to build on recent efforts by CMS to transform the Medicare program into a prudent purchaser of health care services, paying not just for quantity of services but also for quality.
These efforts include:
This fact sheet focuses on changes to the quality measures hospitals will have to report to receive the full payment update in FY 2010. Additional fact sheets, summarizing the provisions of the IPPS FY 2009 final rule, and describing the efforts to reduce the occurrence of hospital-acquired conditions and Never Events, can be found at:
www.cms.hhs.gov/apps/media/fact_sheets.asp
BACKGROUND:
The Reporting Hospital Quality Data for Annual Payment Update (RHQDAPU) program was originally mandated by Section 501(b) of the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003. This section of the MMA authorized CMS to pay hospitals that successfully report designated quality measures a higher annual update to their payment rates. Initially, the MMA provided for a 0.4 percentage point reduction in the annual market basket (the measure of inflation in costs of goods and services used by hospitals in treating Medicare patients) update for hospitals that did not successfully report. The Deficit Reduction Act of 2005 increased that reduction to 2.0 percentage points.
In addition to giving hospitals a financial incentive to report the quality of their services, the hospital reporting program provides CMS with data to help consumers make more informed decisions about their health care. Some of the hospital quality of care information gathered through the program is available to consumers on the Hospital Compare website at: www.hospitalcompare.hhs.gov.
In FY 2007, nearly 95 percent of hospitals participated successfully in the reporting program and received the full market basket update for FY 2008.
NEW MEASURES FOR REPORTING FOR FY 2010 UPDATE
CMS is adding 13 new measures for the FY 2010 program, and retiring one existing measure. For some of these new measures, the hospitals will not have to affirmatively report data to CMS. Instead, CMS will calculate the measures using Medicare claims data. The total number of measures that are included in the FY 2010 payment update is 42.
The inclusion of these additional measures will encourage hospitals to take steps to make care safer for patients. Heart failure, pneumonia, and heart attack—three conditions that are included in the 42 measures for FY 2010—rank among the ten most common diagnoses for Medicare inpatient care, and therefore have the greatest impacts on costs to the Medicare program. The processes of care represented by quality measures for these three conditions are known to improve the quality of care patients receive during inpatient visits to the hospital.
In addition, the measures for the FY 2010 payment determination will include a measure to track re-admissions for heart failure. Re-admissions have a significant impact on beneficiaries and their families. According to MedPAC, re-admissions cost the program $15 billion annually, and potentially $12 billion of those costs are preventable. Almost 18 percent of Medicare patients are re-admitted to the hospital within 30 days of discharge. CMS believes that reporting these measures will encourage better coordination of care among the hospitals where the inpatient services are provided and other post acute settings.
The new measures are:
A. Surgical Care Improvement Project (SCIP) Measure:
B. Re-admission Measure:
C. Nursing Sensitive Measure:
D. AHRQ Patient Safety and Inpatient Quality Indicator Measures (9):
E. Cardiac Surgery Measure:
PREVIOUSLY ADOPTED MEASURES FOR REPORTING FOR FY 2010 UPDATE
The final rule will appear in the August 19 Federal Register and will generally be effective for discharges on or after October 1, 2008.
For more information, see: www.cms.hhs.gov/AcuteInpatientPPS/
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