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Capitol Health Call
May 12, 2015

GAO: The Way Medicare Pays Certain Hospitals Could Lead to Overspending

JAMA. 2015;313(18):1787. doi:10.1001/jama.2015.4509

Under its current payment system, Medicare risks spending too much for care at 11 hospitals that specialize in treating patients with cancer, most of which are designated as comprehensive cancer centers by the National Cancer Institute, according to a Government Accountability Office (GAO) report released March 23.

Medicare pays most hospitals under the prospective payment system (PPS), but these 11 hospitals, which include MD Anderson Cancer Center, Dana-Farber Cancer Institute, and Memorial Sloan Kettering Cancer Center, are exempt because they’ve met certain statutory criteria.

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