Becker's Hospital Review

35 35 CEO/STRATEGY HHS Withdraws 3 Proposed Rules: 6 Things to Know By Ayla Ellison H HS withdrew three proposed rules Oct. 3, including one that would have tested a new Medicare Part B drug payment model. Here are six things to know about the pro- posed rules. 1. CMS withdrew a proposal to test new Medi- care Part B drug payment models. Medicare Part B covers prescription drugs administered in a physician's office or hospital outpatient department. Medicare currently pays physi- cians and outpatient departments the average sales price of a drug, plus a 6 percent add-on. In March 2016, CMS proposed changing the add-on payment to 2.5 percent plus a flat fee payment of $16.80 per drug per day. 2. On Oct. 3, CMS said it withdrew the pro- posed rule aer receiving 1,350 public com- ments in response to the proposed changes. CMS said "the complexity of the issues related to the proposed model design and the desire to increase stakeholder input" led to the deci- sion to pull the proposal. 3. HHS withdrew a proposal to require certain health plans to demonstrate HIPAA compli- ance. HHS issued a proposed rule in January 2014 that would have required controlling health plans — those that control their own business activities — to demonstrate HIPAA compliance for three types of healthcare elec- tronic transactions: eligibility for a health plan, healthcare claim status, and healthcare elec- tronic funds transfers and remittance advice. 4. HHS said aer receiving 72 comments in response to the proposal it chose to withdraw the rule to "re-examine the issues and explore options and alternatives to comply with the statutory requirements." 5. CMS withdrew a proposal that would have revised the conditions for participation for certain providers, conditions for coverage for certain suppliers and requirements for long- term care facilities. Specifically, the proposed rule published in December 2014 would have revised certain definitions and patient's rights provisions to ensure same-sex spouses are recognized and afforded equal rights in cer- tain healthcare facilities that receive Medicare and Medicaid funds. 6. Following publication of the proposed rule, the U.S. Supreme Court held in Obergefell v. Hodges that the Due Process and Equal Protection clauses of the 14th Amendment require a state to license a marriage between two people of the same sex and to recognize same-sex marriages performed in other states. "In light of the Obergefell decision, we have decided to withdraw the December 2014 pro- posed rule," said CMS. "We believe that the Obergefell decision has addressed many of the concerns raised in the … proposed rule." n Louisiana Health System to Eliminate 232 Jobs By Kelly Gooch S hreveport, La.-based Willis-Knigh- ton Health System will lay off 55 employees immediately and even- tually cut another 177 jobs via retire- ment and attrition. Hospital officials attributed the job cuts to quick Medicaid expansion in the state without sufficient state fund- ing for the widened coverage. "This has caused problems for many hospitals, and for Willis-Knighton, one of the largest providers of services to Medicaid patients in the state, it has resulted in an approximately 40 per- cent increase in unfunded costs from last year," hospital officials said in an- nouncing the job cuts. The system said it is committed to sup- porting the affected employees. n Physician Shortage Drives New York Medical Group to Close 3 Centers, Cut 202 Jobs By Ayla Ellison L ifetime Health Medical Group, a medical practice with nine locations in Buffalo and Rochester, N.Y., will close three health centers and lay off 202 employees. The medical group said it will close all three of its health centers in Buffa- lo — Amherst Health Center, Hamburg Health Center and William E. Mosher Health Center — on Dec. 31. "With the closing, regrettably, 202 staff positions will also be eliminated," a Lifetime Health spokesperson told WKBW. "We are deeply sorry to make this change for both our employees and the patients we serve." In a statement to Buffalo Business First, the medical group said it is shutting down the health centers due to a continued shortage of primary care physicians. "Recognizing any further physician departures would jeopardize the group's ability to meet the demand for patient care, Lifetime Health requested and received approval from the New York State Department of Health to close the centers," the statement read. Lifetime Health Medical Group sold the pharmacies at the three health cen- ters to Rite Aid, and Rite Aid will close those pharmacies by Oct. 25. The medical group sent closure notification letters Oct. 2 to patients who re- ceived care at any of the three health centers in the past three years. n

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