The Medicare Payment Advisory Commission (MedPAC) met last week to discuss physician resource use, public reporting of physicians’ financial relationships and having an expert panel on new research regarding use of imaging services.
MedPAC recommended to Congress in March 2005 that the Medicare program use claims data to measure physician resource use and provide confidential feedback. This recommendation was included in the recently enacted Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) legislation. Section 131 of the legislation directs the secretary to establish a physician feedback program, under which the secretary shall use claims data to make confidential reports to physicians that measure the resources involved in furnishing care to individuals. This program requires education and outreach to physicians. MIPPA also requires evaluation of the physician feedback program by the general accountability office (GAO) by March 1, 2011.
CMS is currently conducting a pilot project on physician resource use, which includes four acute conditions (community-acquired pneumonia, urinary tract infection, hip fracture and cholecystitis) and five chronic conditions (congestive heart failure, chronic obstructive pulmonary disease, prostate cancer, coronary artery disease and acute myocardial infarction).
In MedPAC’s June 2008 report to Congress, the commission expressed interest in a public reporting system for physicians. MedPAC is specifically interested in generating policy options for physicians’ financial relationships with drug and device manufacturers, as well as physicians’ relationships with hospitals and ambulatory surgery centers (ASCs). There have been efforts to regulate these relationships voluntarily, through guidelines by organizations such as the Pharmaceutical Research and Manufacturers of America (PhRMA), and official guidance, such as from the office of the inspector general. At this time, MedPAC wants the physician’s financial relationships to be reported by the drug companies, hospitals or ASCs, and not by individual physicians. MedPAC will continue its work on this issue and report to Congress next year.
MedPAC continues to examine the growth in imaging services, which continues to be the fastest-growing physician service in Medicare. Imaging services, especially advanced imaging modalities like MR and CT, have grown twice as fast as other physician services. MedPAC heard from an expert panel, including the GAO, on the impact of physician ownership and self-referral on the increased utilization of imaging services in Medicare. MedPAC has previously recommended prohibiting physician self-referral of nuclear medicine services and physician ownership of entities that lease space or equipment to health-care providers to which they refer their patients. MedPAC has also recommended that CMS reduce the technical component payment for multiple imaging services performed on contiguous body parts and to increase bundling of imaging services. CMS adopted the multiple procedure discount in 2006 in a budget neutral manner so that savings would be distributed to other areas of physician services.
Under the MIPPA legislation, providers of advanced imaging modalities such as CT, MR and PET will be required to meet mandatory accreditation standards by Jan. 1, 2012. Most of the MedPAC members and the expert panel agreed that accreditation was an area that could help improve quality and patient care, although members were not in agreement on prior authorization, which the GAO recommended in their June report. Although most of the panelists spoke of the disparities in imaging growth that exist geographically and by condition and test, there is currently no data available that examine what imaging is inappropriate or how advanced imaging can save money in other areas of Medicare, reduced hospitals stays or surgeries, etc. MedPAC and Congress will continue to examine this area and the GAO is examining the impact of the imaging cuts from the Deficit Reduction Act (DRA) on growth.
MedPAC is an advisory body to Congress and, as such, Congress is not bound to accept the commission’s recommendations. However, Congress does review and consider the commission’s suggestions.