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Start of Joint Replacement Model and 340B Final Rule Delayed

May 19, 2017

This week, the Centers for Medicare & Medicaid Services (CMS) issued a final rule that further delays to January 1 the start date for its Cardiac and Comprehensive Care for Joint Replacement Bundled Payment Model. In addition, Health Resources and Services Administration (HRSA) delayed to October 1 the effective date of its final rule on 340B drug ceiling prices and civil monetary penalties for manufacturers.

In March, HAP reported on CMS’ delay of the bundled payment model a result of the Trump Administration’s freeze on new and pending federal regulatory activity until the President's appointees or designees have had the opportunity to review any new, recently finalized or pending regulations. The American Hospital Association shared its support for the March delay in its comments submitted last month, but cautioned against additional delays that “would effectively turn the start date for these programs into a moving target." In the past, the HHS Secretary Tom Price he has been critical of programs that are mandatory in nature, or those that may restrict how hospitals and physicians care for their patients.

Last month, HAP hosted a webinar in collaboration with its data analytics partner, DataGen, to help HAP member hospital and health systems understand Medicare’s new episode payment models and how to look at data under this new reimbursement paradigm.

In addition, HRSA delayed to October 1 the effective date of its final rule that amends Section 340B of the Public health Service Act to impose monetary sanctions on drug manufacturers who intentionally charge a 340B hospital or covered entity more than the ceiling price established under the procedures of the 340B program.

HAP continues to monitor these and other administrative and regulatory activities and will keep HAP members informed.

Please contact Kate Slatt, HAP’s senior director, health care finance policy with any questions.

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