ESRD Prospective Payment System Proposed Revisions

CMS issued a proposed rule that would update Medicare policies and payment rates for dialysis facilities, while strengthening incentives for improved quality of care and better outcomes for beneficiaries diagnosed with End-stage Renal Disease (ESRD). The proposals would affect payments for dialysis treatments furnished on or after January 1, 2012 under the new bundled ESRD Prospective Payment System (PPS) that was implemented in calendar year (CY) 2011. CMS is projecting that payment rates for dialysis treatments will increase by 1.8 percent and estimates that payments to ESRD facilities in 2012 will total $8.3 billion. CMS is also proposing to strengthen the Quality Incentive Program (QIP) that will adjust payment rates to individual facilities based on how well they meet specified performance standards.

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