The AHA opposes “making drastic cuts solely from providers such as hospitals that are already seeing negative Medicare margins,” the AHA told the House Committee on Energy and Commerce Chairman Fred Upton (R-Mich.).
In a letter to the committee, the AHA proposed three ways to relieve Medicare outlays on physician pay.
1. Enact tort reform. The AHA is supporting current tort reform legislation, along with a “Framework for Medical Liability Reform,” which seeks to “create a legal environment that fosters high-quality patient care.” Increased costs from unchecked medical liability litigation would harm hospitals as well as physicians.
2. Link physician and hospital incentives. The AHA proposed physician pay-for-performance through physician-hospital incentives that “would serve the purpose of both enabling a performance-based payment program and reducing Medicare spending.” Existing gainsharing demonstrations, for example, could also “allow physicians to earn more without increasing Medicare spending.”
3. Link physicians to value-based programs. Physician payment could be linked to value-based components in the Medicare reimbursement policy for hospitals. “Recognizing that hospitals and physicians have to work together in these endeavors to improve care coordination, efficiency and quality, now may be the time for physicians to move forward in this area,” the AHA stated.
Read the AHA News Now report on physician payments.
Related Articles on Medicare Physician Fee Cuts:
House GOP Chair Plans to Slash Discretionary Spending, Warns of More Cuts
Federal Debt Panel Proposes 20 Major Cuts for Hospitals, Physicians
House Almost Unanimously Passes Permanent Physician Fee-Fix
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.