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Medicare Cap and proposed legislation

September 19, 2006 • Health Care News • Larry Benz

Download Medicare_outpatient_value_purchasing.doc

I guess I deserve it. Since I post quite a bit about CMS, several subscribers saw fit to email this proposed legislation HR 6048 The Medicare Outpatient Therapy Value-Based Purchasing Act of 2006.  This is not to be confused with other possible legislation including the Barton legislation which would possibly increase the fee schedule .5% for three years instead of the impending 5% reduction (provided that providers succumb to a utilization management program).

The document for you to download provide an excellent executive summary (undoubtedly not prepared by the famous CMS PR team).

The attempt is to compensate providers of PT, OT, SLP based on effectiveness of care.  Per the summary, the legislation would encourage providers of therapy services to provide the highest quality care in the most efficient way possible, using evidence-based methods of rehabilitation (evidence based is not a misprint).  In this legislation, therapy providers would be compensated based on their performance compared to national benchmarks for a given condition, eliminating the need for the Medicare therapy cap.

The bill calls for implementation in 2010 and a transitional program eliminating the therapy cap for providers who participate voluntarily before 2010.  Quality measurements would be stored in a national database and available to the public so consumers can make informed decisions when choosing therapy providers.

Regardless of whether the bill has any chance, you have to applaud the efforts to 1. come up with an alternative to the Cap which is supposed to happen but we are seeing very little suggestions and 2. Use evidence based methods of rehabilitation.

Larry

Larry Benz

Dr. Larry Benz, DPT, OCS, MBA, MAPP, is the Executive Chairman of Confluent Health. He is nationally recognized for his expertise in private practice physical therapy and occupational medicine. Dr. Benz’s current areas of interest include conducting research and integrating empathy, compassion, and positive psychology interventions within physical therapy. He released a book on September...

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