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Mark McClellan news from FierceHealthcare

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ALSO NOTED: McClellan goes to think tank; N.Y. hospitals expect $28 million; and much more...

> Former CMS head Mark McClellan will soon head a new health care center at think tank the Brookings Institution. Read more...

SPOTLIGHT: McClellan argues for power of competition

Outgoing CMS head Mark McClellan sat down for a chat this week with The Christian Science Monitor. In a wide-ranging discussion, McClellan laid out his belief in the power of competition for improving healthcare efficiency, citing a 10 percent drop in provider costs under the Medicare prescription drug program as an example. He also expressed support for the notion of making Medicare premiums income-sensitive, a concept CMS plans to implement in 2007. Article

Norwalk named acting director of CMS

Leslie Norwalk has been named acting director of the Centers for Medicare and Medicaid Services. She will be replacing CMS Administrator Mark McClellan, who announced that he was stepping down from his post to join a think tank focused on improving the U.S. healthcare system. "She is a nationally recognized expert on Medicare issues and played a central role in the successful implementation of the prescription drug benefit and other reforms to Medicare and Medicaid," Mike Leavitt, …

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ALSO NOTED: UnitedHealthcare, HCA continue talks in FL; CO may get new VA hospital; and much more...

> In Florida, UnitedHealthcare and HCA are still discussing how to work out their differences. The massive contract dispute between the two healthcare industry giants has left thousands of patients in Colorado and Florida in limbo. Report

> The House has passed a bill to fund a new VA hospital in Colorado. …

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CMS rolls out quality improvement program

CMS announced that it is rolling out the Physician-Hospital Collaboration Demonstration (PHCD), a three-year program designed to gauge whether hospitals can improve outcomes without raising costs, if they reward doctors for providing better care. Under the program, "the hospital would be paid its usual inpatient rate for the patient's care, but would pay to the physician a portion of the savings resulting from quality improvement and efficiency initiatives taken by the physician." …

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Who will fill McClellan's shoes?

Speculation is in the air in the wake of Mark McClellan's announcement that he will step down as CMS administrator. McClellan said he will join a think tank focused on improving the U.S.'s healthcare system. Now the question is: Who will replace him? The New York Times reports that CMS Deputy Administrator Leslie Norwalk is an obvious candidate. CQ HealthBeat says that Herb Kuhn, …

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CMS's McClellan to resign?

According to the Dallas Morning News, CMS administrator Mark McClellan plans to announce his resignation as early as today. He has held the position since March of 2004. Citing anonymous sources, the paper reports that McClellan "had been considering moving on for some time and would probably pursue new opportunities in the private sector or in academia." McClellan declined to comment on the paper's report and a White House spokesperson said he couldn't confirm the Dallas …

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CMS's $50M mistake

A "data processing error" at CMS has caused the agency to incorrectly refund 231,000 Medicare recipients a total of $50 million. The recipients were mistakenly repaid an average of $215 for several months' worth of their prescription drug coverage. But no worries, the government assured recipients that it would be getting that money back. Medicare beneficiaries were also mistakenly told that Medicare would no longer automatically deduct their prescription drug premiums from their Social …

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CMS to cut reimbursements 5.1%

CMS announced that it will cut Medicare and Medicaid reimbursement rates by 5.1 percent in 2007. Hospitals, meanwhile, will get a 3 percent raise for outpatient care on the condition that they submit data proving that they're following guidelines for improving patient care. CMS head Mark McClellan says the cuts are due to more treatments being given to each patient, which doesn't necessarily improve outcomes. That is why hospitals won't receive higher reimbursements unless they submit …

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McClellan defends transplant programs

Last week the Los Angeles Times reported that as many as one in five organ transplant programs don't meet federal certification standards. On Tuesday, CMS head Mark McClellan defended the program in a letter to Senator Charles Grassley (R-IA), who had demanded an explanation of the Times article's finding. McClellan stated that the federal government increased oversight last fall in response to problems with the University of California Irvine transplant program. …

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