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Medicare moves in the right direction by linking reimbursements to outcomes

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The future of medicine is in compensation by outcome, not by procedure and, last week, the future came knocking on Medicare’s door. Using authority provided by the Affordable Care Act, the Obama administration says it will issue rules to change the system of compensation for two common procedures. The rules would require hospitals in 75 metropolitan areas, including Buffalo, to accept a flat fee for the costs associated with a hip or knee replacement. That would include the costs of surgery, medications and rehabilitation. What is more, if the quality of care is found to be insufficient, Medicare will claw back some of the money. Read more…


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