tci Medicare Compliance & Reimbursement - 2003 Issue 12

Reimbursement: FINANCIAL GOING TOUGH FOR DOCS, HOSPITALS

Physicians aren’t getting much opportunity to celebrate this year’s Medicare reimbursement increase. At a March 17 Centers for Medicare & Medicaid Services “open door” forum, Administrator Tom Scully warned of future pay cuts. The biggest factor, according to Scully: Physicians responded to last year’s negative 5.4 percent update by “jacking up the volume of services” to the tune of a “stunning” eight percent volume growth. At a March 20 congressional hearing, the CMS chief said the volume increase sent Medicare physician spending up seven percent, higher than it would have been had...

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