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One of Medicare’s Top Officials Wants to “Banish Fee-for-Service”

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In recent remarks, director of the Center for Medicare and Medicaid Innovation (CMMI) Adam Boehler told reporters he’d “like to banish fee-for-service.”

“How much time do doctors spend documenting and coding for revenue?” he asked. “That’s a terrible system.”

Boehler suggested that he feels incentives under most fee-for-service scenarios are misaligned; they encourage waste and discourage healing.

“If you call 911 today, the ambulance isn’t paid unless it takes you to the hospital. That’s a silly incentive,” he noted. “We’re paying the wrong way. So, we’re looking at a variety of different areas where we say, ‘Does this make sense or not?'”

Not enough of America’s physicians are yet participating in value-based reimbursement programs like accountable care organizations (ACOs), Boehler added. Only approximately 5% of physicians are currently operating within ACOs.

“I know there are a lot of physicians that want more [risk],” he told MedPage Today‘s Joyce Frieden. “I don’t think it’ll continue like that. It’s not the problem that they don’t want risk; it’s a problem that they can’t take it in a way that works for them.”

Read more of Boehler’s remarks here, in MedPage Today.