Medicare Continues Assault on Healthcare Reimbursement

Implications: In 2008, Medicare will no longer pay the cost for hospital care related to certain types of errors including some hospital acquired infections.  This continued decrease in reimbursement will hurt those hospitals most in need of new information systems and increased staffing.

Analysis: Medicare continues to look for ways to save money.  While it seems reasonable not to pay for certain errors- e.g. transfusions of the wrong type blood- the concept of not paying for some hospital acquired infections is frightening.  Who defines these "errors?"  Some of the most vulnerable institutions are those that care for the sickest patients with comorbid diseases that predispose to nosocomial infections.  These same institutions have reduced staffing due to previous Medicare cuts and also cannot afford the advanced information systems that may prevent these "errors."  The solution of CMS to cut their way to solvency remains a failure.  Creative ideas are needed but now forthcoming from CMS.