KCP says facility closures likely if “untenable” proposed cut is approved

Note: After all the mega-profits companies have made from dialysis via Medicare, they are preparing to cut services, rather than cut their profits.

KCP says facility closures likely if “untenable” proposed cut is approved
JULY 23, 2013 No Comments
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Kidney Care Partners, citing concerns from patient and professional groups in the kidney community, said in a prepared stateent yesterday that the proposed 9.4% cut in the Medicare composite rate for dialysis care will lead to facility closures and significantly impact the quality of patient care

On July 1, the Centers for Medicare and Medicaid Services put forth a proposed rule cutting funding for dialysis by 12% starting in 2014. The cut was tempered by a 2.6% increase in the payment rate, leaving dialysis clinics wit about $24 less per treatment. The cut, if finalized, would fail to cover the cost for each 3-4 hour dialysis session for Medicare beneficiaries, KCP says.

“Dialysis providers are struggling to absorb and adjust to the other Medicare cuts made to the program in recent years,” said Ron Kuerbitz, chair of Kidney Care Partners. “As government data clearly show, Medicare barely covers the cost of providing dialysis to ESRD patients, even before the impact of sequestration-related cuts. The current proposal is untenable, and would dramatically underfund this crucial therapy for Medicare beneficiaries on dialysis. To protect the well-being of our patients, CMS must ensure that Medicare reimbursement is adequate to cover the cost of providing quality care.”

If the recent proposal is finalized, the cut “would push the vast majority of facilities into the red, forcing very difficult decisions that could ultimately hurt the very patients for which the Medicare program is charged with for their care,” said Kuerbitz.

The following are excerpts from public statements made by myriad groups within the broader kidney community in response to the proposed rule.

American Kidney Fund
“Such a drastic cut in services to this vulnerable group of patients is unconscionable, especially on top of other cuts in the dialysis payment system in recent years. If this rule is finalized, it is going to limit patients’ access to dialysis and reduce their options for care.”

American Nephrology Nurses’ Association
“…any cuts by the federal government will have enormous repercussions in the kidney community…some patients could lose quality care and access to the treatments they need to survive.”

American Society of Nephrology
“People with kidney disease, among the most vulnerable patients, are disproportionately underrepresented minorities, and such a large cut may reduce access to care and quality of treatment.”

Dialysis Patient Citizens
“We cannot recall a time where CMS has proposed such a deep cut for any patient group, and are concerned that it would chose to do so for the treatment of some of America's most vulnerable citizens. While we recognize that CMS was instructed by Congress to adjust dialysis payment based on recent changes in utilization, no one in the kidney community expected CMS to propose such a devastating cut.”

Kidney Care Council
“Adequate Medicare reimbursement is not optional for dialysis facilities. Medicare barely covers cost of care for most dialysis facilities and, in fact, nearly 35% of dialysis facilities across the country operate with negative Medicare margins…. Cuts of this size proposed by CMS put access to care for the most vulnerable patients in urban and rural settings at risk.”

National Kidney Foundation
“Currently, across all dialysis providers, Medicare profit margins are only 3-4% (as estimated by the Medicare Payment Advisory Committee – MEDPAC)…. NKF is concerned that some providers may not be able to withstand cuts and will have to close facilities and that many others may have to eliminate patient- focused programs, services, and benefits that improve patients’ health and quality of life.”

Renal Physicians Association
“Further cuts on the scale of those outlined in the proposed rule will not only compromise the ability of most dialysis facilities to maintain the staffing levels necessary to provide appropriate care to Medicare beneficiaries with ESRD, but will also increase the likelihood that some dialysis facilities will be forced to close their doors. Additionally, the reductions are likely to have a disproportionately negative impact on rural communities and efforts to address health care disparities in the ESRD patient population.”

Renal Support Network
“… It is incomprehensible to propose such an ill-advised cut on a program for this vulnerable patient population. These cuts will impact hundreds of thousands of people who require dialysis in order to survive, especially patients in rural and inner city facilities.”

http://www.nephrologynews.com/articles/109643-kcp-says-facility-closures-likely-if-untenable-proposed-cut-is-approved