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U.S. to Boost Medicare Hospital Payments

Tuesday August 3, 2004 12:01 AM

WASHINGTON (AP) - Hospitals will receive $5 billion more in Medicare payments
next year, including a small bonus for reporting quality data to the government,
Medicare chief Mark McClellan said Monday.

Payments to urban hospitals will average 5.7 percent more next year. Rural
hospitals will see an average increase of 6.2 percent, under provisions of last year's
Medicare law designed to boost spending on rural health care. Hospital payments
are expected to total $105 billion in the government spending year that begins in
October.

The changes were contained in regulations issued Monday by the Centers for
Medicare and Medicaid Services.

The Medicare overhaul for the first time tied payments to hospitals' willingness to
submit quality measures to the government.

``Virtually all are submitting data to us in order to get the full update,'' McClellan
said.

Through the regulations, Medicare also is trying to get a handle on the rapidly
increasing payments to long-term-care hospitals, in which patients have an average
length of stay greater than 25 days.

Spending on those facilities, which often are contained within an acute-care
hospital, has jumped more than 40 percent in three years, according to the
Medicare Payment Advisory Commission.

Medicare is phasing in payment limits over four years, McClellan said.

The government also is boosting reimbursements for several high-tech procedures,
including implanting a neurostimulator in the brain to treat Parkinson's disease.

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On the Net:

Medicare: http://www.medicare.gov

SOURCE: Guardian, UK
http://www.guardian.co.uk/worldlatest/story/0,1280,-4379473,00.html

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