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Still No Sustainable Growth Rate Resolution

March 6, 2014 | No Comments
Posted by Frank Ciesla

While there are proposals that Congressional leaders seem to be willing to adopt in regard to the Sustainable Growth Rate (“SGR”), they have not yet done so.  The relief that has been provided from the 24% cut in payments to physicians expires on March 31, 2014, unless something is done, including extending the deadline.

As of this point in time, there still is not a determination as to how the repeal of the SGR will be paid for.  It appears that the President’s proposed budget does not address how to pay for the SGR solution.  In a recent address, Senator Wyden stated that reducing hospital reimbursement to pay for the SGR solution was not off the table.  If this route is followed, it is clear that there will be a confrontation between the physician community and the hospital community, both of which need each other going forward.

If the SGR is repealed, physicians need to be concerned and need to focus on the payment mechanism in the future and the shift of the risk of patient noncompliance from the payors to the providers.  Obviously, that will all depend upon the statute and regulations which are ultimately adopted in regard to the repeal of the SGR.

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