Calling it “essential” and that “it should be a part of final legislation on the matter of health reform”, the House today struck a deal updating how Medicare pays hospitals and providers, normalizing regional payment disparities, and how it will change these payment schedules to reflect quality (not quantity) of care.

The House is upping the ante in the fight to control costs on the government side of health reform. If anything, the move is a step in the right direction with respect to the control of fraud — which usually does stem, in part, from the ability and freedom to take advantage of rate inequities in areas of the country where the practice is rampant. | LINK

UPDATE: However, the ballooning deficit in times of economic unrest are just too much for the 53 senators who voted to squelch floor debate on a bill to increase Medicare payment amounts to providers.The bill before the Senate was an effort to correct a Medicare legal loophole that cuts physician fees when program spending rises faster than economic growth. The AMA usually lobbies effectively against such cuts, but not this year. | LINK

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