Device Manufacturers Get Support from Congressman Johnson
The Advanced Medical Technology Association (AdvaMed) has criticized planned regulation changes about how Medicare calculates its reimbursements to hospitals. The Hill reports that Congressman Nancy L. Johnson (R- Conn. 5th District) and Chairman of the Subcommittee on Health of the Committee on Ways and Means has brought support to some of the arguments brought by device manufacturers against these proposed changes to the inpatient prospective payment system (IPPS).
Johnson wrote in a letter to CMS Administrator Mark McClellan that “[t]he two-step approach that has been proposed will create erratic swings in reimbursement year-over-year.” The CMS plans to base its payment rates on costs rather than what hospitals charge for procedures starting next year. It is also considering setting higher rates for some complex procedures performed on more severe patient cases, but it would do so in FY08. Another concern Johnson voiced that echoed manufacturer criticism was the always-evolving nature of costs, given the rapid introduction of new technologies. Manufacturers want to be able to introduce new, hopefully more effective devices at higher prices. Observers from other industries such as general business computing will be forbidden to wonder why downward pressure on price through self-inflicted commoditization practiced by companies such as Dell never seems to be on the medical device industry’s agenda.
Related articles:
- Medical Device Association to Lobby On Value (Hospital Buyer)
- Medical Device Lobbyists (The Hill)
June 16, 2006 Related topics: Legal & legislative, Medical Devices & Products