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Medicare Bill To Expand Quality Improvement Efforts


News Release

November 25, 2003
For Immediate Release

Contact: Richard Deutsch
202-331-5790 Ext. 313

Medicare Bill To Expand Quality Improvement Efforts

Washington, D.C.—The Medicare bill passed by the Senate today assures that Quality Improvement Organizations (QIOs) will take on additional responsibilities and increase their efforts to improve the quality of care provided to the nation’s seniors.

The final Medicare bill instructs the Secretary of Health and Human Services to use QIOs to begin conducting pharmacotherapy quality improvement projects on a voluntary basis with providers, practitioners, as well as with the prescription drug plan sponsors and Medicare Advantage plans created by the legislation. The bill broadens the Medicare statute to require QIOs to offer technical assistance for improving systems of care to all of the new private plans created by the bill.

The bill also authorizes the Secretary of HHS to contract with QIOs to lead new Medicare demonstration projects that use information technology to improve chronic disease management services for beneficiaries. In addition, the bill offers financial incentives to encourage hospitals to regularly report to the government on the quality of the care they provide under the new system.

‘We are grateful for the opportunity this legislation creates for QIOs to improve the quality of outpatient pharmacotherapy for the elderly and disabled,” said AHQA Executive Vice President David Schulke. “The legislation will allow QIOs to follow up their work in hospitals to get heart attack and heart failure patients started on life-saving medications while they are still in the hospital. Now QIOs can help ensure these patients fill and refill their prescriptions after discharge. We will closely monitor implementation to see that the flow of drug utilization data from Medicare Advantage plans and pharmaceutical benefits management firms is fast and smooth.”

Adding Safeguards to the New Drug Benefit

The legislation requires QIOs to offer quality improvement assistance related to medication therapy provided by the new drug benefit. QIOs will work with plans and providers to promote adoption of safe medication therapy and effective systems to prevent errors and adverse events associated with the use of prescription drugs.

Encouraging Advances in Chronic Disease Management

The legislation also creates a “care management performance” demonstration— a three year pay-for-performance program designed to encourage physicians to adopt and use health information technology and evidence-based outcomes measures to improve continuity of care for chronically ill Medicare beneficiaries.

The bill provides a statutory basis for forthcoming efforts by the Centers for Medicare and Medicaid Services to help develop a framework and standards for the use of information technology to improve the quality of care delivered by physician practices, and it authorizes financial incentives to encourage physicians to test and adopt such technology.

The bill provides for QIOs or other contractors to offer technical assistance and education to physicians enrolled in the demonstration program—to assist physicians with adoption of health information technology, improve their ability to meet practice standards, and boost capacity to implement required clinical and outcome measures.

Providing New Momentum for Quality Improvement in Hospitals
The bill also begins to apply pressure on hospitals to report data on quality of care. In recent years ESRD facilities, nursing homes and home health agencies have all begun to publicly report quality data. The legislation calls for hospitals to begin submitting data on ten measures of quality of care to the federal government next year or face cuts in Medicare payments.

“Public reporting of quality data should have a similar effect on hospitals as it has had on nursing homes and home health agencies,” noted Todd Ketch, AHQA Vice President for Government Affairs, “As more and more hospitals track and analyze their own data, and compare it to results reported by their competitors, it will increase their incentive to work with QIOs to improve quality of care.”

Under contract to CMS, QIOs provide technical assistance on a voluntary basis to hospitals, physicians, nursing homes, home health agencies, and Medicare + Choice plans.

For More Information on Quality Improvement Organizations: www.ahqa.org


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