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Medicare Payment Policy

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FIguRe<br />

12–1<br />

12-1<br />

250<br />

200<br />

150<br />

100<br />

Length of stay (in days) FIGURE<br />

50<br />

0<br />

Hospice...<br />

growth in length of stay among hospice patients with the longest stays has slowed<br />

2000<br />

2008<br />

2009<br />

2010<br />

2011<br />

10th<br />

Note: Length of stay is calculated for decedents who used hospice at the time of death or before death and reflects the total number of days the decedent was enrolled in<br />

the <strong>Medicare</strong> hospice benefit during his/her lifetime.<br />

Source: MedPAC analysis of the denominator file and the <strong>Medicare</strong> Beneficiary Database from CMS.<br />

Note: Note and Source are in InDesign.<br />

25 percent of stays were 5 days or less, unchanged from<br />

Source:<br />

the prior year.<br />

The Commission has previously expressed concern about<br />

very short and very long hospice stays. With very short<br />

hospice<br />

Notes<br />

stays, the<br />

about<br />

concern<br />

this<br />

is that<br />

graph:<br />

patients enter hospice<br />

too late to fully benefit from all that hospice has to offer.<br />

As discussed • Data in our is in March the datasheet. 2009 report, Make a Commission- updates in the datasheet.<br />

convened • panel WATCH of hospice FOR GLITCHY industry representatives RESETS WHEN YOU UPDATE DATA!!!!<br />

indicated that very short stays in hospice stem largely from<br />

• The column totals were added manually.<br />

factors unrelated to the <strong>Medicare</strong> hospice payment system,<br />

based on their preferences.<br />

such as some physicians’ reluctance to have conversations<br />

about hospice • I can’t or a delete tendency the to legend, delay such so discussions I’ll just have until to crop it out in InDesign.<br />

death is imminent; difficulty some patients and families<br />

may have in accepting a terminal prognosis; and financial<br />

incentives default in the when FFS system you change for increased the data. volume of<br />

services • (<strong>Medicare</strong> Use paragraph <strong>Payment</strong> styles Advisory (and Commission object styles) 2009). to format.<br />

• I had to manually draw tick marks and axis lines because they kept resetting when I changed any data.<br />

Some point to the requirement that beneficiaries forgo<br />

intensive conventional care to enroll in hospice as a<br />

• Use direct selection tool to select items for modification. Otherwise if you use the black selection tool, they<br />

factor that contributes to deferring hospice care and<br />

thus short hospice stays. PPACA mandates a three-year<br />

demonstration at 15 sites to test the effect on quality and<br />

The issue<br />

•<br />

of<br />

Data<br />

the FFS<br />

was<br />

system<br />

from:<br />

rewarding<br />

R:\Groups\MGA\data<br />

volume over<br />

book cost 2007\data of allowing book concurrent 2007 hospice chp1 and conventional<br />

quality is a broader issue that affects not only <strong>Medicare</strong>’s care. However, no funding was appropriated for this<br />

hospice services but <strong>Medicare</strong>’s other services paid under demonstration, so its future is unclear. A few private<br />

272 Hospice services: Assessing payment adequacy and updating payments<br />

25th<br />

50th<br />

Percentile<br />

75th<br />

90th<br />

FFS. <strong>Payment</strong> system reforms such as accountable care<br />

organizations—which restructure incentives and focus<br />

on the patient’s overall needs rather than fragmented<br />

services—may help reduce financial incentives that can<br />

deter hospice referral. With respect to the challenges<br />

of physician–patient communication about advanced<br />

illnesses, there may be potential for shared decisionmaking<br />

tools to improve the timeliness and clarity of<br />

information patients receive about their condition and<br />

treatment options and empower patients to make choices<br />

100<br />

Ye<br />

20<br />

20<br />

20<br />

20<br />

20

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