Additional sites awarded for heart bypass center demonstration

Health Care Financing Review, Spring, 1993

Three additional hospitals have been chosen as demonstration sites for the Medicare pilot project to test the feasibility of a negotiated bundled price for all Medicare services provided in episodes of coronary artery bypass graft surgery. The sites are St. Luke's Episcopal Hospital in Houston, Texas; Methodist Hospital of Indiana in Indianapolis, Indiana; and St. Vincent Hospital and Medical Center in Portland, Oregon. This brings the total number of sites to 7 selected from the original list of 10 hospitals recommended by the application review panelists. The first four sites are Saint Joseph's Hospital of Atlanta in Atlanta, Georgia; St. Joseph Mercy Hospital in Ann Arbor, Michigan; Ohio State: University Hospital in Columbus Ohio; and University Hospital in Boston, Massachusetts.

The goal of the 3-year demonstration is to assess the advantages of a negotiated all-inclusive pricing arrangement for episodes of heart bypass surgery that results in a savings to the Medicare program while maintaining high-quality care. Hospitals participating in the demonstration receive a global payment covering hospital and related physician services for heart bypass surgery.

Implementation of the demonstration at the new sites was implemented in May and June of 1993. Participation by physicians and beneficiaries in the demonstration is voluntary. Hospitals not participating in the demonstration will continue to provide services under the traditional Medicare program.

For more information, contact Armen Thoumaian of the Office of Research and Demonstrations at (410) 966-6672.