Medicare Payout to Doctors and Hospitals Revamped

Medicare is experimenting with a new way to pay doctors, hospitals, and medical service providers for cardiac and hip fracture patients. According to Patrick Conway, director of the Center for Medicare & Medicaid Innovation, the new system will incentive doctors and hospitals to coordinate and work together on the care they provide Medicare beneficiaries. During the trial, doctors, hospitals, and rehab centers will be paid the regular Medicare rates, however, they are responsible for the quality of care and costs measured against benchmarks set by Medicare. If those goals are met or exceeded, the medical care providers will receive a financial bonus. But should they fall short of those goals, they may have to pay the federal government back.