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Three Important Developments


Email Alert

October 19, 2007

Clinical Laboratory Competitive Bidding Demonstration Program

Pursuant to § 302(b) of the MMA, CMS designed a demonstration program to determine whether competitive bidding can be used to provide laboratory services under Medicare Part B at fees below current Medicare payment rates. On October 16, 2007, CMS announced that it selected the San Diego-Carlsbad-San Marcos, California metropolitan area as the first of two locations under this demonstration program.

For additional details regarding this demonstration program, access the CMS press release and the Federal Register publication.

Home Health Pay-for-Performance Demonstration Program

On October 11, 2007, CMS announced the implementation of a demonstration program for home health pay-for-performance. Under the demonstration, home health agencies will be eligible to receive incentive payments if their quality improvement efforts result in the highest performance levels or significant improvements in patient outcomes. CMS will begin soliciting home health agencies for the project this fall with the actual demonstration performance period to begin January 1, 2008. The demonstration will operate for two years in seven states.

For additional details regarding this demonstration program, access the CMS press release and the Medicare Demonstrations web page of the CMS website.

New AKBS Safe Harbor for Arrangement for Federally Qualified Health Centers

Pursuant to § 431 of the MMA, a new AKBS safe harbor protecting certain arrangements involving goods, items, services, donations, and loans provided by individuals and entities to health centers funded under section 330 of the Public Health Service Act was issued in the Federal Register on October 4, 2007. This new safe harbor is effective on December 3, 2007.

Additional details regarding this new safe harbor can be found in the Federal Register publication.

We would like to thank Ross E. Sallade, Esquire (Nelson Mullins Riley & Scarborough LLP, Raleigh, NC) for providing these updates.

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