Healthcare coalition asks to meet with HCFA on bundling regulation - US Healthcare Financial Management Association; Health Care Financing Administration - Brief Article

Healthcare Financial Management, Nov, 1991

In a letter to Health Care Financing Administration (HCFA) Administration Gail R. Wilensky, PhD, HFMA and 12 other healthcare associations expressed "grave concern" over the reappearance of an Omnibus Budget Reconcialiation Act of 1986 (OBRA '86) outpatient bundling mandate and HCFA's apparent intentions to finalize regulations governing it. During the summer, members of the coalition were expecting final regulations to be issued soon. HCFA published its proposed rule on outpatient bundling in August 1988.

The coalition has required a meeting with Wilensky to discuss the issue. Expressing appreciation for HCFA's open-door policy of consulting with healthcare organizations during the development of the capital regulations, the coalition wrote, "We hope you will give us a similar opportunity to offer our input now on the outpatient bundling issue."

"The financial and legal environment in which hospitals operate today is substantially changed from that which existed when OBRA |86 was enacted," the coalition noted. The coalition also said the proposed rule was "overly broad" and would impose significant costs and administrative burden on hospitals.

The coalition pointed out that Congress has requested that the Department of Health and Human Services (HHS) submit a legislative proposal for an outpatient prospective payment system by Sept. 1. Although that proposal has not yet been released, the associations noted that the bundling provision would represent a piecemeal change. "By an large, hospitals . . . would prefer shifting attention and resources to issues of overall outpatient payment reform," the letter stated. Earlier, HFMA requested members of Congress to delay finalizing the rules until HCFA submits its proposed outpatient payment system.