Medicare payments for hospital care (including inpatient and outpatient hospital services) have for years fallen behind the actual costs of providing services to Medicare beneficiaries. According to the Medicare Payment Advisory Commission (MedPAC), total Medicare hospital margins will remain negative in 2013 (-6.0%). Read Premier’s policy paper on hospital payments and the federal budget.
The Affordable Care Act (ACA) made major changes to the Medicare program to move our healthcare system away from a payment system that pays providers for the volume of services to one that rewards providers in part based on performance on quality and outcomes. Read Premier’s policy paper on hospital quality improvement programs.