Transforming How Medicare Pays for Heart Surgery
July 27, 2016
The Obama administration is pushing forward with moves to transform how Medicare pays for care; Demand for long-lasting factory goods fell sharply in June.
- The Obama administration is pushing forward with moves to transform how Medicare pays for care. The administration will do this by creating a new system for paying for heart surgery. The new system will pay hospitals a set amount, known as a “bundled payment,” for the care around a heart attack or bypass surgery, instead of paying separately for each component of care. If the hospital meets quality targets and ends up spending less than the target, it gets to keep some of the money that is saved; if it spends over the target, it has to pay back money to the government. The idea is to incentivize saving money and providing quality care. [The Hill]
Economic Indicators & News
- Demand for long-lasting factory goods fell sharply in June. This could be a sign that overseas turmoil is weighing on U.S. manufacturers. New orders for durable goods decreased a seasonally adjusted 4.0% in June from the prior month; this is the largest decline since August 2014. [WSJ]