Does this help the home based business? UPDATE 1-US Medicare issues final dialysis payment rules.
Mon Jul 26, 2010 5:55pm EDT
* Final "bundling" rule targets end-stage renal disease
* Payments affect drugmakers, dialysis providers
* Rule takes effect starting in 2011
* Inclusion of oral drugs delayed to 2014
LOS ANGELES, July 26 (Reuters) - The U.S. Medicare program listed its final plan for tightening payments for kidney dialysis treatment and proposed a new rule linking payment for services to performance standards.
The rule issued on Monday, by the agency that administers the health insurance program, will reshape how the federal government pays to treat the elderly and disabled Medicare patients with end-stage renal disease and affects a variety of companies from Amgen Inc (AMGN.O) to DaVita Inc (DVA.N).
The U.S. Centers for Medicare and Medicaid Services said the new payment standards, first proposed several years ago, will be phased in over four years starting Jan. 1. Oral drugs will not be included until 2014.
The final standardized base rate for each dialysis treatment for 2011 is $229.63. Dialysis centers can choose to waive the transition period and be paid entirely under the new bundling rule.
Dialysis helps remove excess fluids and toxins from the bloodstream and can help patients live longer despite failing kidneys.
The procedure and related drugs and services cost Medicare $9.2 billion in 2007, the agency said in a statement. (Reporting by Deena Beasley and Susan Heavey; Editing by Tim Dobbyn)
It seems home or self-care dialysis training payment adjustment is in. It is encouraging. Assume provider gets $600 for 6 weeks of training and $100 per week. If 1% of ESRD population takes the training, the industry would expect to get 2.4 millions in revenue for the services. (400,000 * 0.01 * 600 = $2,400,000)