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MedPAC discusses hospital short stay policy

MedPAC commissioners gave mixed feedback regarding site-neutral payment for stroke care

The Medicare Payment Advisory Commission (MedPAC) discussed last week the option of creating specific Diagnosis-Related Groups for one-day hospital stays, in an effort to reduce payment differences between short inpatient and similar outpatient hospital stays.

According to a report by the American Hospital Association, other related topics of discussion included rebilling for short stays, efforts to alleviate beneficiary concerns related to observation stays, and possible policy changes to the Recovery Audit Contractor auditing process. The two-day meeting also included an educational session on the 340B Drug Pricing Program, and a session on site-neutral payment for stroke care and 17 other conditions treated in inpatient rehabilitation facilities and skilled nursing facilities.

MedPAC commissioners gave mixed feedback regarding site-neutral payment for stroke care, but seemed amenable to the idea for the other conditions. When MedPAC meets Dec. 18-19, commissioners will consider a recommendation by Chairman Glenn Hackbarth for site-neutral payment for these 17 conditions as well as three other orthopedic conditions discussed last year. The commission also will consider other Medicare payment recommendations at the December meeting.

Click here to view the presentations from last week's MedPAC meeting.