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Advising the Congress on Medicare issues
MedPAC > Recommendations > Hospital inpatient and outpatient services (2)

Hospital inpatient and outpatient services (2)

March 1, 2007

Concurrent with implementation of severity adjustment to Medicare’s diagnosis related group payments, the Congress should reduce the indirect medical education adjustment in fiscal year 2008 by 1 percentage point to 4.5 percent per 10 percent increment in the resident-to-bed ratio. The funds obtained from reducing the indirect medical education adjustment should be used to fund a quality incentive payment system.

Topics: Hospital and Quality.