CMS recently announced that on average the bundled base payment
for dialysis services under the prospective payment system (PPS)
that first became effective in 2011 will increase in 2012 by 2.1%
over the reimbursement rates in effect for 2011. This increase is
based on the CMS legally required annual update of PPS for dialysis
services based on any changes in the market basket of dialysis
services costs and any productivity adjustments during the period
Along with this change, CMS announced the quality improvement
performance standards that will apply for 2012. If in 2012 (the
baseline year for 2014 payments), a dialysis provider fails to meet
these standards (which are part of the ESRD Quality Incentive
Program, called QIP), CMS will reduce by up to 2% the payments
during 2014 to the dialysis provider from the amount that would be
otherwise payable to the provider. The QIP changes are significant
in that they require tracking during 2012 of additional clinical
measures by dialysis providers.
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