§1395cc–4 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary must create a pilot program to test coordinated care and bundled payments for certain Medicare patients around a hospital stay. The goal is to improve care, quality, and efficiency for patients admitted to the hospital for selected conditions. The program must be started by January 1, 2013, run for 5 years (with possible expansion after January 1, 2016 if it saves money or improves quality and the Chief Actuary certifies savings), and the Secretary may waive Medicare rules as needed to run the test. The Secretary will pick how to assess patients, make site-neutral quality measures for episodes and post-acute care, require yearly data reporting (using electronic records when possible), and hire an independent evaluator and report initial results to Congress within 2 years and final results within 3 years after the program starts. Defined terms (one line each): "Applicable beneficiary" means a person on Medicare Part A and B (not Part C or PACE) admitted to a hospital for a chosen condition. "Applicable condition" means one of 10 conditions the Secretary selects using factors like chronic vs. acute, surgical vs. medical, readmissions, and post-acute costs. "Applicable services" means inpatient acute care, physician services, outpatient/ER care, post-acute services (home health, skilled nursing, inpatient rehab, long-term care hospitals) and other services the Secretary allows. "Episode of care" normally covers the 3 days before admission, the hospital stay, and 30 days after discharge, though the Secretary may set a different period. The program will test payment methods (including bundled payments and bids) paid to participating groups, and payments must be set so they do not cost more for those patients in a year than would have been spent without the pilot. Chapter 35 of title 44 does not apply to selecting, testing, evaluating, or expanding models under the pilot.

Title 42, §1395cc–4

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)The Secretary shall establish a pilot program for integrated care during an episode of care provided to an applicable beneficiary around a hospitalization in order to improve the coordination, quality, and efficiency of health care services under this subchapter.

(2)In this section:

(A)The term “applicable beneficiary” means an individual who—

(i)is entitled to, or enrolled for, benefits under part A and enrolled for benefits under part B of such subchapter, but not enrolled under part C or a PACE program under section 1395eee of this title; and

(ii)is admitted to a hospital for an applicable condition.

(B)The term “applicable condition” means 1 or more of 10 conditions selected by the Secretary. In selecting conditions under the preceding sentence, the Secretary shall take into consideration the following factors:

(i)Whether the conditions selected include a mix of chronic and acute conditions.

(ii)Whether the conditions selected include a mix of surgical and medical conditions.

(iii)Whether a condition is one for which there is evidence of an opportunity for providers of services and suppliers to improve the quality of care furnished while reducing total expenditures under this subchapter.

(iv)Whether a condition has significant variation in—

(I)the number of readmissions; and

(II)the amount of expenditures for post-acute care spending under this subchapter.

(v)Whether a condition is high-volume and has high post-acute care expenditures under this subchapter.

(vi)Which conditions the Secretary determines are most amenable to bundling across the spectrum of care given practice patterns under this subchapter.

(C)The term “applicable services” means the following:

(i)Acute care inpatient services.

(ii)Physicians’ services delivered in and outside of an acute care hospital setting.

(iii)Outpatient hospital services, including emergency department services.

(iv)Post-acute care services, including home health services, skilled nursing services, inpatient rehabilitation services, and inpatient hospital services furnished by a long-term care hospital.

(v)Other services the Secretary determines appropriate.

(D)(i)Subject to clause (ii), the term “episode of care” means, with respect to an applicable condition and an applicable beneficiary, the period that includes—

(I)the 3 days prior to the admission of the applicable beneficiary to a hospital for the applicable condition;

(II)the length of stay of the applicable beneficiary in such hospital; and

(III)the 30 days following the discharge of the applicable beneficiary from such hospital.

(ii)The Secretary, as appropriate, may establish a period (other than the period described in clause (i)) for an episode of care under the pilot program.

(E)The term “physicians’ services” has the meaning given such term in section 1395x(q) of this title.

(F)The term “pilot program” means the pilot program under this section.

(G)The term “provider of services” has the meaning given such term in section 1395x(u) of this title.

(H)The term “readmission” has the meaning given such term in section 1395ww(q)(5)(E) of this title.

(I)The term “supplier” has the meaning given such term in section 1395x(d) of this title.

(3)The Secretary shall establish the pilot program not later than January 1, 2013.

(b)(1)The Secretary shall determine which patient assessment instrument (such as the Continuity Assessment Record and Evaluation (CARE) tool) shall be used under the pilot program to evaluate the applicable condition of an applicable beneficiary for purposes of determining the most clinically appropriate site for the provision of post-acute care to the applicable beneficiary.

(2)(A)The Secretary, in consultation with the Agency for Healthcare Research and Quality and the entity with a contract under section 1395aaa(a) of this title, shall develop quality measures for use in the pilot program—

(i)for episodes of care; and

(ii)for post-acute care.

(B)Any quality measures developed under subparagraph (A)(ii) shall be site-neutral.

(C)The Secretary shall ensure that the development of quality measures under subparagraph (A) is done in a manner that is consistent with the measures developed and endorsed under section 11 So in original. Probably should be “sections”. 1395aaa and 1395aaa–1 of this title that are applicable to all post-acute care settings.

(c)(1)(A)Subject to subparagraph (B), the pilot program shall be conducted for a period of 5 years.

(B)The Secretary may, at any point after January 1, 2016, expand the duration and scope of the pilot program, to the extent determined appropriate by the Secretary, if—

(i)the Secretary determines that such expansion is expected to—

(I)reduce spending under this subchapter without reducing the quality of care; or

(II)improve the quality of care and reduce spending;

(ii)the Chief Actuary of the Centers for Medicare & Medicaid Services certifies that such expansion would reduce program spending under this subchapter; and

(iii)the Secretary determines that such expansion would not deny or limit the coverage or provision of benefits under this subchapter for individuals.

(2)(A)An entity comprised of providers of services and suppliers, including a hospital, a physician group, a skilled nursing facility, and a home health agency, who are otherwise participating under this subchapter, may submit an application to the Secretary to provide applicable services to applicable individuals under this section.

(B)The Secretary shall develop requirements for entities to participate in the pilot program under this section. Such requirements shall ensure that applicable beneficiaries have an adequate choice of providers of services and suppliers under the pilot program.

(3)(A)(i)The Secretary shall develop payment methods for the pilot program for entities participating in the pilot program. Such payment methods may include bundled payments and bids from entities for episodes of care. The Secretary shall make payments to the entity for services covered under this section.

(ii)Payments under this section for applicable items and services under this subchapter (including payment for services described in subparagraph (B)) for applicable beneficiaries for a year shall be established in a manner that does not result in spending more for such entity for such beneficiaries than would otherwise be expended for such entity for such beneficiaries for such year if the pilot program were not implemented, as estimated by the Secretary.

(B)A payment methodology tested under the pilot program shall include payment for the furnishing of applicable services and other appropriate services, such as care coordination, medication reconciliation, discharge planning, transitional care services, and other patient-centered activities as determined appropriate by the Secretary.

(C)(i)A bundled payment under the pilot program shall—

(I)be comprehensive, covering the costs of applicable services and other appropriate services furnished to an individual during an episode of care (as determined by the Secretary); and

(II)be made to the entity which is participating in the pilot program.

(ii)Applicable services and other appropriate services for which payment is made under this subparagraph shall be furnished or directed by the entity which is participating in the pilot program.

(D)The Secretary shall establish procedures, in the case where an applicable beneficiary requires continued post-acute care services after the last day of the episode of care, under which payment for such services shall be made.

(4)(A)The Secretary shall establish quality measures (including quality measures of process, outcome, and structure) related to care provided by entities participating in the pilot program. Quality measures established under the preceding sentence shall include measures of the following:

(i)Functional status improvement.

(ii)Reducing rates of avoidable hospital readmissions.

(iii)Rates of discharge to the community.

(iv)Rates of admission to an emergency room after a hospitalization.

(v)Incidence of health care acquired infections.

(vi)Efficiency measures.

(vii)Measures of patient-centeredness of care.

(viii)Measures of patient perception of care.

(ix)Other measures, including measures of patient outcomes, determined appropriate by the Secretary.

(B)(i)A entity shall submit data to the Secretary on quality measures established under subparagraph (A) during each year of the pilot program (in a form and manner, subject to clause (iii), specified by the Secretary).

(ii)To the extent practicable, the Secretary shall specify that data on measures be submitted under clause (i) through the use of an qualified electronic health record (as defined in section 300jj(13) of this title) in a manner specified by the Secretary.

(d)The Secretary may waive such provisions of this subchapter and subchapter XI as may be necessary to carry out the pilot program.

(e)(1)The Secretary shall conduct an independent evaluation of the pilot program, including the extent to which the pilot program has—

(A)improved quality measures established under subsection (c)(4)(A);

(B)improved health outcomes;

(C)improved applicable beneficiary access to care; and

(D)reduced spending under this subchapter.

(2)(A)Not later than 2 years after the implementation of the pilot program, the Secretary shall submit to Congress a report on the initial results of the independent evaluation conducted under paragraph (1).

(B)Not later than 3 years after the implementation of the pilot program, the Secretary shall submit to Congress a report on the final results of the independent evaluation conducted under paragraph (1).

(f)The Secretary shall consult with representatives of small rural hospitals, including critical access hospitals (as defined in section 1395x(mm)(1) of this title), regarding their participation in the pilot program. Such consultation shall include consideration of innovative methods of implementing bundled payments in hospitals described in the preceding sentence, taking into consideration any difficulties in doing so as a result of the low volume of services provided by such hospitals.

(g)(1)In conducting the pilot program, the Secretary shall apply the provisions of the program so as to separately pilot test the continuing care hospital model.

(2)In pilot testing the continuing care hospital model under paragraph (1), the following rules shall apply:

(A)Such model shall be tested without the limitation to the conditions selected under subsection (a)(2)(B).

(B)Notwithstanding subsection (a)(2)(D), an episode of care shall be defined as the full period that a patient stays in the continuing care hospital plus the first 30 days following discharge from such hospital.

(3)In this subsection, the term “continuing care hospital” means an entity that has demonstrated the ability to meet patient care and patient safety standards and that provides under common management the medical and rehabilitation services provided in inpatient rehabilitation hospitals and units (as defined in section 1395ww(d)(1)(B)(ii) of this title), long term care hospitals (as defined in section 1395ww(d)(1)(B)(iv)(I) 22 See References in Text note below. of this title), and skilled nursing facilities (as defined in section 1395i–3(a) of this title) that are located in a hospital described in section 1395ww(d) of this title.

(h)Chapter 35 of title 44 shall not apply to the selection, testing, and evaluation of models or the expansion of such models under this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Parts A, B, and C, referred to in subsec. (a)(2)(A)(i), are classified to section 1395c et seq., 1395j et seq., and 1395w–21 et seq., respectively, of this title. section 1395ww(d)(1)(B)(iv)(I) of this title, referred to in subsec. (g)(3), was redesignated section 1395ww(d)(1)(B)(iv) of this title by Pub. L. 114–255, div. C, title XV, § 15008(a)(3), Dec. 13, 2016, 130 Stat. 1321. Codification Another section 1866D of act Aug. 14, 1935, was renumbered section 1866E and is classified to section 1395cc–5 of this title.

Amendments

2010—Pub. L. 111–148, § 10308(b)(1), made technical correction to directory language of Pub. L. 111–148, § 3023, which enacted this section. Subsec. (a)(2)(B). Pub. L. 111–148, § 10308(a)(1), substituted “10 conditions” for “8 conditions”. Subsec. (c)(1)(B). Pub. L. 111–148, § 10308(a)(2), added subpar. (B) and struck out former subpar. (B). Prior to amendment, text read as follows: “The Secretary may extend the duration of the pilot program for providers of services and suppliers participating in the pilot program as of the day before the end of the 5-year period described in subparagraph (A), for a period determined appropriate by the Secretary, if the Secretary determines that such extension will result in improving or not reducing the quality of patient care and reducing spending under this subchapter.” Subsec. (g). Pub. L. 111–148, § 10308(a)(3), added subsec. (g) and struck out former subsec. (g). Prior to amendment, text read as follows: “Not later than January 1, 2016, the Secretary shall submit a plan for the implementation of an expansion of the pilot program if the Secretary determines that such expansion will result in improving or not reducing the quality of patient care and reducing spending under this subchapter.”

§1395cc–4 National pilot program on payment bundling