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Vol. 37, No. 24
June 13, 2011
top news Congressional cross hairs
Physician-owned device distributors scrutinized Five senior senators want the HHS Office of Inspector General to investigate the proliferation of entities that can steer surgeons to make implant choices based on personal profit. . 13
Do’s and don’t’s
FDA discusses best practices for pre-submission meetings The device center hopes upcoming guidance on pre-submission interactions will reduce inconsistencies in FDA’s handling of the informal meetings. . . . . . . . . . . . . . . . . . . . . 15
Ortho acquisition
Stryker buys Memometal for broader access to $1 billion extremities market Deal will bolster Stryker’s position in the fastest growing segment of the reconstructive orthopedic implant space. . . . . . . . . . . . . . . . . . 18
Device Industry Urges CMS To Protect Use Of Medical Innovations In ACO Program Monica Hogan m.hogan@elsevier.com
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n an attempt to prevent accountable care organizations from stifling medtech innovation, medical device groups are calling for widespread changes to a Medicare Shared Savings Program proposal unveiled earlier this spring. CMS took comments through June 6 on its proposed ACO program, slated under health care reform to begin next January. (See “Accountable Care Orgs: CMS Proposes Plans For New Health Delivery Strategy” – “The Gray Sheet” April 4, 2011.) ACO proponents believe that by encouraging more coordination in the care of individual patients, the voluntary program could lower health care costs by reducing duplicative tests and unnecessary hospitalizations, among other savings. Under the CMS proposal, Medicare would share cost savings with the ACO, which would then distribute its share of savings among participating providers. Device industry stakeholders support these general aims, but raise concerns that as written, the rulemaking does not do enough to discourage providers from withholding medically necessary products and services. The Medical Imaging & Technology Alliance recognizes the challenges that an accountable care organization faces in trying to simultaneously achieve the three goals set forth by CMS for the ACO program – better care for individuals, better health for populations and lower growth in expenditures by eliminating waste and inefficiencies – all while not withholding needed care. “The short, three-year timeframe for agreements under the [Medicare Shared
Device Industry Recommendations A variety of industry trade groups want specific changes to CMS’ ACO proposal. They are asking the agency to: • Develop a comprehensive, independent clinical care monitoring program • Adjust cost-saving performance benchmarks to account for new technologies and procedures • Update quality measures frequently to keep up with medical advances • Promote disease prevention by excluding costs of preventive care services from an ACO’s financial performance evaluation • Clarify the role of independent clinical laboratories in the Medicare ACO program • Adopt safeguards for the use of genetic testing and personalized medicine within ACOs • Establish a mechanism for reporting underutilization or withholding of care • Waive Medicare restrictions on certain telemedicine services in metropolitan counties • Allow telehealth services to originate from a hospice or a patient’s home
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