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January 31, 2007 12:00 AM

AMGA wants investment compensation

Michael Romano
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    The American Medical Group Association, which represents most of the

    nation's biggest and best-known medical groups, will try to convince

    Congress that its members should be paid extra for their sizable

    investments in information technology and care-management methods.

    "Large medical groups have electronic medical records, electronic

    registries and care managers," says Chet Speed, the AMGA's vice president

    for public policy and political affairs. "We're asking Congress to create

    a reimbursement system that would reimburse folks that can do real care

    coordination."

    Speed says lawmakers can choose several ways to reward

    large medical groups for this type of sophisticated, coordinated care,

    including boosting rates per beneficiary, allowing practices to share

    savings or adding new current procedural terminology, or CPT, billing

    codes.

    The push for the extra reimbursement is at the top of the

    public policy agenda this year for the AMGA, whose members, including the

    Mayo Clinic and the Cleveland Clinic Foundation, deliver care to more

    than 50 million Americans. The Alexandria, Va.-based trade group also

    plans to focus its congressional lobbying effort on broadening access to

    healthcare for the uninsured and creating a new reimbursement system that

    keeps pace with practice costs, Speed says.

    Another big national

    trade group for doctors' practices, the Englewood, Colo.-based Medical

    Group Management Association, will formulate its 2007 advocacy agenda

    sometime next month. But William Jessee, the MGMA's president and chief

    executive officer, says the organization's top priority is to replace the

    current Medicare payment system with a formula based on practice costs,

    which have risen about 5% to 5.5% each year over the past decade. He says

    the MGMA also will focus on administrative-simplification measures to

    reduce costs and improve efficiencies.

    Jessee, whose trade group

    represents predominantly smaller groups but also includes larger

    practices, says he remains neutral on the AMGA's reimbursement plan

    because of his group's mixed membership. However, he predicted that the

    proposal would draw fierce opposition from many doctors' groups.

    "There's no question that Washington is trying to push for bigger

    groups and more-integrated systems," says Jessee, whose association

    represents about 21,000 members working in organizations that employ more

    than 270,000 physicians. "It'll be interesting to see where this goes. I

    think it's unlikely that we'll see major payment reform this year, but

    the idea is now on the table and getting talked about."

    Speed says he isn't sure how lawmakers will respond to the

    AMGA's proposition that its members deserve extra money because of their

    investments, size and scope. "The way budget neutrality works," Speed

    says, "if there was a care-coordination (payment) program implemented,

    and let's say it cost $500 million, it has to come from Medicare Part B.

    We have always wanted this to be an add-on payment, but fiscal realities

    being what they are, I'd be surprised if that happened."

    This story initially appeared in the Jan. 29 edition of Modern Healthcare magazine.

    What do you think? Write us with your comments at [email protected]. Please include your name, title and hometown.

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