Dive Brief:
- Rather than going all in right away, CMS has decided to phase in a much-dreaded 11.9% cut in dialysis provider reimbursement over the next three to four years.
- In its final rule on the subject, CMS also authorized a 50% increase to home dialysis training add-on payment and tightened up the Quality Incentive Program, which punishes providers who don't meet specialized performance standards.
- Moody's Investors Services has said that a gradual cut is a best-case scenario for the industry, as it anticipates that growth in the dialysis sector and marketbasket adjustments will help compensate for the lessened reimbursement.
Dive Insight:
According to a report in Reuters, the planned reimbursement cuts for dialysis providers are linked mainly to a drop in the use of costly hormone erythropoietin, known as EPO, to treat common dialysis side-effect anemia. Industry-wide lowering of EPO use came in the wake of medical studies showing the dangers of overuse, which isn't so bad in and of itself. What's potentially more worrisome, however, is that the cuts could still drive smaller dialysis treatment providers out of business, especially in rural areas, according to industry experts.Let's hope CMS addresses the problem of keeping these vital rural resources alive before it's too late.