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Medicare Hospital In-Patient Cuts Proposed

by Barbara Kram, Editor | April 18, 2006
AdvaMed warns about
negative effect of cuts
WASHINGTON, D.C. - AdvaMed has warned that proposed changes in the Medicare hospital inpatient rule make broad-sweeping cuts that would have a disproportionately negative effect on patients receiving advanced medical treatments.

AdvaMed expressed great concern about Medicare's proposal to base future payments on historical costs because the data that would be used to calculate rates does not accurately reflect the procedures and services available today and would penalize the hospitals that use newer, more advanced technologies.

"Newer medical technologies are allowing patients to recover faster and often reduce overall medical and social costs," said Ann-Marie Lynch, executive vice president for payment and health care delivery. " The significant changes proposed will need to be carefully studied to avoid unintended consequences that will prevent patients from receiving the most effective treatments."

AdvaMed supports a measured approach to refining inpatient hospital payments. The Association is looking forward to working with the Administration and Congress to provide patients with full access to medical technology.

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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. Our members produce nearly 90 percent of the health care technology purchased annually in the United States and more than 50 percent purchased annually around the world. AdvaMed members range from the largest to the smallest medical technology innovators and companies.