This IHPI seminar featured member Edward C. Norton, Ph.D., professor of Health Management and Policy, School of Public Health, and professor of Economics, College of Literature, Science, and the Arts.
The discussion involved The Center for Medicare and Medicaid Services (CMS) paying hospitals a percentage bonus (or penalty) in the future based the experience of Medicare patients’ entire episode of care, up to 30 days post-discharge. Each patient’s episode of care - including in a skilled nursing facility, outpatient rehabilitation, and home health care - affects future Medicare payments to the index hospital. This creates stronger incentives to avoid bad patients and implicit incentives between cost and quality.
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