Physician Responds to CMS’ Proposed 2011 Payment Changes, Argues 0.1% Cut Suggests Hospitals’ Protected Status

CMS has announced an estimated 0.1 percent cut in Medicare payments to hospitals for fiscal year 2011, which some have suggested puts into question hospitals’ protection in an era of healthcare reform. However, at least one physician argues that the minimal cut in fact suggests hospitals will remain protected.

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“For every thousand pennies given to the hospital, the hospital has to give back one penny. A hospital that makes $10 million has to give back $10,000,” says Steve Rupert, DO, a pain medicine physician in Evansville, Ind. “That is not a sign of weakness. It demonstrates the hospitals are protected.”

The American Hospital Association has contested the cuts, saying cuts would cause billions of dollars to be “taken out of the system just as hospitals are grappling with sweeping changes and payment reductions.”

Dr. Rupert says he would be “grateful” if physician payment cuts were anywhere near 0.1 percent.

Contact Lindsey Dunn at lindsey@beckersasc.com.

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