"Medicare Spending Slows as Hospitals Improve Care: Peter Orszag"
Various hospital executives have told me they have already begun to prepare for less generous reimbursement from Medicare as the new federal health care reform law takes effect and there is a greater focus on value. They are therefore trying to become more efficient now. That's the discussion taking place in the strategic planning process at The Mount Sinai Medical Center. The Mount Sinai program to reduce readmissions, for example, is costly for the hospital both because of the extra expense of running it and because fewer readmissions means less revenue. Dr. Kenneth Davis, the president and chief executive officer of The Mount Sinai Medical Center, says the hospital won't be able to afford continuing the successful program if the financial incentives remain so skewed against it. Learn more.

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