The CMS will conduct a four-year demonstration project to test new reimbursement models for end-stage renal disease, which costs Medicare some $16 billion annually. CMS Administrator Tom Scully told reporters he would like to update the "wacky" system under which CMS pays dialysis centers too little for their base costs but too much for ancillary services. The demonstration will test a bundled payment approach that could encourage dialysis centers to improve quality and better manage their patients' health. Participating organizations will choose between a managed-care or fee-for-service model. "We're trying to give (dialysis centers) the right incentives to do the right thing, but they're nervous," Scully said, referring to concerns that bundled payments will mean lower payments. The CMS will publish a notice on the project in the June 4 Federal Register. Applications are due Aug. 28. -- by Jeff Tieman
CMS to test new payment models for renal disease
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