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Washington Highlights: October 17, 2008

House Dems Begin Work on Second Stimulus Package

House Speaker Nancy Pelosi (D-Calif.) Oct. 13 convened an economic forum with House Democratic leaders and some of the nation's leading economists to begin to lay the groundwork for a second economic stimulus package.

The size of the package has not been decided. At an Oct. 16 briefing, Pelosi staff refused to put a number of the proposal, saying only that the economists said it should be larger than the $60.8 billion package (H.R. 7110) approved by the House in late September but it will not be as high as $300 billion, as was reported in the press earlier in the week.

In a statement released Oct. 15, Speaker Pelosi said she has "asked the chairs of relevant committees to schedule hearings in the coming weeks on the key provisions of a fiscally responsible recovery package to get our economy moving again." Hearings will begin the week of Oct. 20 when Federal Reserve Chair Ben Bernanke testifies before the House Budget Committee.

The timing for consideration of the package also has not been decided. Pelosi staff said the plan might be considered in November, late January, or February, but cautioned against speculation that the House would conduct a lame-duck session in mid-November when members return to Washington for organizational meetings for the new Congress.

Senate Majority Leader Harry Reid (D-Nev.) has announced that the Senate will return for a lame-duck session beginning Nov. 17 to take up a package of public land use 150 bills that have been blocked by Sen. Tom Coburn (R-Okla.). No plans have been publicized for possible Senate action on a second economic stimulus. The Senate Sept. 26 failed to gain the 60 votes needed to consider a $56.2 billion economic stimulus package offered by Reid and Senate Appropriations Chair Robert Byrd. The "Economic Recovery Act of 2008" (S. 3604) included an additional $1.2 billion for NIH.

Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

HHS Releases Interim Guidance on Patient Safety Act

The Department of Health and Human Services' Agency for Healthcare Research and Quality (AHRQ) and Office of Civil Rights (OCR) published in the Oct. 14 Federal Register a Notice of Availability announcing interim guidance on the "Patient Safety and Quality Improvement Act of 2005"(P.L. 109-41). The guidance is intended to provide policies and procedures for implementing the Patient Safety Act prior to the release of a final rule. Specifically, the interim guidance provides information on how an entity can become a Patient Safety Organization (PSO) and how patient safety data may be protected as Patient Safety Work Product (PSWP) in the interim period. The guidance is effective immediately and will remain in effect until the release of the final rule, anticipated in late 2008.

Information:
Jennifer Faerberg, Director, Health Care Affairs
AAMC Health Care Affairs
jfaerberg@aamc.org
(202) 862-6221

Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490

HHS Plans to Study Institutions' Research Misconduct Education Efforts

The Office of the Secretary of Health and Human Services (OS) Oct. 14 announced in the Federal Register a 30-day public comment period on the proposed information collection, "Evaluating Institutions Research Misconduct Education Efforts." The study will be conducted by the HHS Office of Research Integrity (ORI) and will evaluate the knowledge of medical school faculty members about their institution's research misconduct policies and procedures. The ORI will study the role of research misconduct education in medical schools and will identify best practices and approaches used by medical institutions to disseminate information and guidelines to their faculty, staff, and students. Study participants have been identified from the National Institutes of Health (NIH) list of medical school principal investigators that received NIH research projects awards in 2005 or 2006. Comments should be submitted to the OS OMB Desk Officer. Additional information about the contents of the study is available upon request.

Information:
Irena Tartokovsky, Senior Science Policy Analyst
AAMC Biomedical and Health Sciences Research
itartakovsky@aamc.org
(202) 862-6134

CMS Solicits Comments on Physician Payment Locality Study

The Centers for Medicare and Medicaid Services (CMS) has extended to Nov. 3 the deadline for comments on an interim study evaluating alternative methods for determining physician payment localities. CMS is not proposing to make adjustments at this time, but is soliciting comments on the options presented in the interim study. CMS also has stated that changes to payment localities must be budget neutral and could significantly redistribute physician payments.

CMS is required by law to adjust Medicare Physician Fee Schedule payments by geographic differences. Current Geographic Practice Cost Index (GPCI) adjustments are based on 89 localities that have not been updated since 1997. In the proposed 2009 Physician Fee Schedule, CMS stated that it was evaluating 4 alternative approaches to reconfigure the payment localities. The 4 alternatives include:

  1. CMS Core Based Statistical Areas (CBSAs). This method uses a combination of Metropolitan Statistical Areas and Metropolitan divisions to form localities within a state. This method would be consistent with the inpatient prospective payment system.
  2. Separate High Cost Counties from Existing Localities. This method uses an iterative process to create new localities from the existing ones when the costs for a county are more than a certain percentage above the costs for the rest of the locality.
  3. Separate Metropolitan Statistical Areas (MSAs) from Statewide Localities. Similar to option 2, this method creates new localities by using MSAs within a state.
  4. Locality Tiers. This option groups counties within a state into tiers based on their costs.

The interim report, produced by Acumen LLC, is available on the CMS website. Comments on the interim report may be submitted to MPFS@cms.hhs.gov until Nov. 3.

Information:
Mary Patton, Senior Specialist
AAMC Health Care Affairs
mpatton@aamc.org
(202) 862-6297

GAO Issues Report on Hospital Variation in Meeting Community Benefit Requirements

The Government Accountability Office (GAO) Oct. 14 released a report, "Variation in Standards and Guidance Limits Comparison of How Hospitals Meet Community Benefit Requirements," that concludes that "IRS's community benefit standard allows nonprofit hospitals broad latitude to determine the services and activities that constitute community benefit." GAO also noted that even when there is agreement on the definition of charity care, it may be measured and reported in different ways. However, the study occurred prior to the IRS's requirement that hospitals that complete Form 990 also report community benefit activities on Schedule H, beginning in the 2009 tax year. It is anticipated that community benefit reporting will be more consistent once hospitals must complete Schedule H.

Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490