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Managing Editor
Scott Harris
sharris@aamc.org

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Elissa Fuchs
efuchs@aamc.org

AAMC Reporter: August 2008

CMS Releases Preventable Conditions Rules

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Related Resources

Teaching Hospitals Battle Hospital-acquired Infections—Reporter, Nov. 2007

 

On July 31, the Centers for Medicare and Medicaid Services (CMS) announced that as of Oct. 1 it will not pay for treatments connected with three kinds of conditions or complications that it considers preventable in a hospital setting.

In its original proposed rule, CMS had suggested nine conditions as candidates for its Hospital-Acquired Conditions (HAC) initiative, which was created to incentivize high-quality patient care by eliminating Medicare payments to hospitals for care that results from a patient contracting specified conditions. However, CMS decided to include only three of the conditions in its final rule after the physician and hospital communities charged that many of the conditions were not reasonably preventable.

"Some of these measures require additional work, but the agency will come back to these and others each year," said CMS Acting Administrator Kerry Weems, according to news reports.

The three conditions that will no longer be covered by Medicare are complications related to surgical site infections following elective procedures, certain manifestations of poor control of blood sugar levels, and deep vein thrombosis or pulmonary embolism following total knee replacement and hip replacement procedures. The six other conditions or complications originally proposed for do-not-pay classification are Legionnaires' disease, iatrogenic pneumothorax, delirium, ventilator-associated pneumonia, staphylococcus aureus septicemia, and clostridium difficile-associated disease.

The HAC initiative is part of a rapidly growing movement among public and private health care payers to tie payments to positive patient outcomes, and increase hospital accountability for patient safety. CMS has been attempting to take the lead in this movement through various measures including the HAC initiative and other quality improvement measures. Physicians and hospital leaders said they welcome opportunities to improve quality, but had questioned whether all nine originally proposed conditions were truly preventable.

"Aligning quality with payment is wise and long overdue in the U.S. health care system," said Peter J. Pronovost, M.D., Ph.D., a professor of medicine and medical director of the Center for Innovation in Quality Patient Care at Johns Hopkins University School of Medicine. "In the current system, overuse is paid for and misuse is often rewarded. We have to pay for what we achieve.... But if we put the CMS rule into practice as proposed, then it wasn't going to achieve its goal. Some of these conditions [were] preventable, but for many, that's just not the case."

"It feels like they're picking on places, like teaching hospitals, that do the kinds of risky surgeries and procedures that others do not. Hopefully, we'll get that all figured out over time."
—Gordon Alexander, M.D., president, University of Minnesota Medical Center, Fairview

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According to a CMS spokesperson, all the conditions were selected based on frequency, treatment cost, preventability, and other factors. The CMS estimates that the cost savings from the proposal will be relatively small—about $20 million, or a tiny fraction of the total Medicare budget—and the intention of the rule is to improve care quality, not save money.

Because teaching hospitals treat many high-risk and complex cases as well as transfers from other treatment locations, hospital executives wonder if it may be appropriate to account for these higher risks.

"It feels like they're picking on places, like teaching hospitals, that do the kinds of risky surgeries and procedures that others do not," said Gordon Alexander, M.D., president of the University of Minnesota Medical Center, Fairview. "Hopefully, we'll get that all figured out over time."

Various health care and policy experts have been critical of the government for a perceived lack of leadership in implementing evidence-based practices, or methods of care that integrate cutting-edge clinical and scientific data. The HAC initiative could be an opportunity to change that, officials said, by using the program to mandate improved policies on issues such as sterilization and care efficiency.

"A wiser policy would be not just whether you had deep vein thrombosis," Pronovost said. "But rather if you had it and didn't get the recommended therapies."

The CMS has already finalized another rule that will take effect Oct. 1 and designates eight other preventable conditions. Hospitals are working to update their coding and treatment protocols to better track and prevent accidental cases of leaving medical objects inside patients after surgery, hospital-acquired urinary tract infections, central line-associated bloodstream infections, administration of incompatible blood products, air embolism, patient falls, mediastinitis after cardiac surgery, and pressure ulcers. Hospital leaders objected to several of these conditions being termed preventable as well.

At the state level, Minnesota hospitals collectively agreed in 2004 not to charge anyone if any of 27 agreed-upon preventable conditions occur, so the new rules will have little practical impact in that state. According to Alexander, Minnesota hospitals have already learned the best ways to adjust their practices.

"We have a new form we fill out that forces the caregiver to make a purposeful decision on whether or not to bill," Alexander said. "Some of these conditions, such as pressure ulcers, we're finding are sometimes present on arrival, and not acquired inside the hospital. So we have trained our coders to seek out evidence of whether something was present before or truly hospital-acquired."

—By Scott Harris


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