Last week, the Centers for Medicare and Medicaid Services (CMS) announced a program called the Acute Care Episode (ACE) to test hospital and physician services bundled payments in an effort to improve quality of care through Medicare fee-for-service. (Source)
Under the current system, CMS pays the hospital a certain amount and pays physicians who cared for the patient separately. According to CMS, separate payment systems may lead to conflicts of interests and affect health care decisions.
Mike Leavitt, secretary of the U.S. Department of Health and Human Services said, “We are always looking for ways to improve the Medicare program, both in efficiency and in better care for patients, and this new demonstration promises to be a big step in that direction. It brings patients and health care providers together in an innovative cooperative effort to improve the quality of care for all.”
Kerry Weems, acting CMS administrator, added that the “ACE demonstration reflects CMS’ ongoing commitment to actively pursuing the best medical care for Medicare beneficiaries through value-based purchasing.”
Applicants from Texas, Oklahoma, New Mexico, and Colorado may participate in the ACE demonstration.
