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New Bill Will Save Medicare $100 Billion and Improve Post-Acute Care

A recently drafted Bill known as the Bundling and Coordinating Post-Acute Care Act of 2014 (BACPAC) is an attempt to improve post hospitalist care for patients and save Medicare as much as $100 billion over 10 years.

The fundamental idea is that Medicare would pay a lump sum for 90 days of post-acute care. Post-acute care providers, hospitals and physicians would each be rewarded with a share of 70% of any money that may be remaining after they have provided high-quality health care to the patient as an incentive for efficiency. The bill also waives the costly three-day hospital stays that are currently required before Medicare will cover post hospitalist care costs.  Medicare Patients

If the Bill passes, directing the patient’s post hospitalist care will be a “PAC coordinator.” This will be “an entity (such as a hospital, health insurance issuer, third-party benefit manager or PAC provider) that is certified” according to the language in the Bill, H.R. 4673.

The Act is also intended to eliminate the various reimbursement rates that are currently paid out to different provider types for specific post-acute care services. This “site-neutral” system is typical of recommendations being made by the Medicare Payment Advisory Commission recently. Hospitals and inpatient rehabilitation facilities are typically less pleased with the site-neutral system because they have traditionally been reimbursed by Medicare at higher rates than post-hospitalist care providers have been.

The Bill was co-sponsored by Rep. David B. McKinley (R-WV) and Rep. Tom Price (R-GA). Dobson DaVanzo and Associates performed the cost savings analysis that estimates the savings that will result from H.R. 4673 to be anywhere from $85 billion to $100 billion over ten years following implementation of the Act – which is proposed for January 1, 2016.

The Act was introduced to the House of Representatives on May 19, 2014 and referred to the House Ways and Means and the House Energy and Commerce committees for consideration.

If you’re interested in improving post hospitalist care services while reducing costs, contact General Medicine, The Post Hospitalist Company to see how we can help.

Tom Prose