The law uses various approaches to attempt to slow the rise in health spending ??? which is growing faster than the nation???s overall economic output ??? while still maintaining quality. Hospital spending under Medicare will be reduced by a total of 1 percent in the 2013 fiscal year, while hospitals that perform better than their peers will receive extra payments.
Money “will be allocated to hospitals based on their overall performance on a set of quality measures that have been shown to improve clinical processes of care and patient satisfaction,” according to the Centers for Medicare & Medicaid Services (CMS). “This funding will be taken from what Medicare otherwise would have spent, and the size of the fund will gradually increase over time, resulting in a shift from payments based on volume to payments based on performance.”
What Is a Hospital Buying Group?
What Is the Difference Between Nonprofit Hospitals and For-Profit Hospitals?
What Is the American Hospital Association (AHA)?
What is the American Hospital Association’s Position on the Affordable Care Act? What Is a Nonprofit Institution in the Health Care Industry?