Hosptial Acquired Infections Costs, Steiros Infection Control Consultants, CMS HAI Reimbursements, Heath Care Savings

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Report Summary

		Applying two different Consumer Price Index (CPI) adjustments to
		account for the rate of inflation in hospital resource prices, the overall annual direct medical costs of HAIs in U.S. hospitals ranges from $28.4 to $33.8 billion (after adjusting to 2007 dollars using the CPI for all urban consumers) and $35.7 billion to $45 billion (after adjusting to 2007 dollars using the CPI for inpatient hospital services).

		After adjusting for the range of effectiveness of possible infection
		control interventions, the benefits of prevention range from a low of $5.7 to $6.8 billion (20 percent of infections preventable, CPI for all urban consumers) to a high of $25.0 to $31.5 billion (70 percent of infections preventable, CPI for inpatient hospital services).

Ref: Center of Disease Control - Healthcare Associated Infections - The Burden
Ref: CDC: Direct Medical Costs of HAI in US Hospitals and Benefits of Prevention

Cost of Hospital-Acquired Infections (HAIs)

Medical Costs of HAIs

		The Direct Medical Costs of Healthcare-associated Infections in U.S. Hospitals and the Benefits of Prevention
		Report, illustrates results from the published medical and economic literature to provide a range of estimates for the annual direct medical hospital cost of treating HAIs in the United States.

Pay for Performance Reimbursement - Hospital-acquired Conditions (HACs)

		On February 8, 2006, President Bush signed the Deficit Reduction Act (DRA) which contained language creating a system for quality adjustment
		of Medicare payments for inpatient hospital services. This act required the Center of Medicare and Medicaid Services (CMS) to select at least two hospital-acquired conditions (HACs) proposed for quality payment adjustment by FY 2009 and additional conditions that would be considered for reduced payment in subsequent years. CMS consulted with the Centers for Disease Control and Prevention (CDC) to identify the proposed conditions.

		The CMS has titled the program "Hospital-Acquired Conditions and Present on Admission Indicator Reporting" and published rules in 2007, thus
		revising the Medicare hospital inpatient prospective payment system (IPPS) to implement changes in the reimbursement system based on these identified conditions. CMS began the new payment policy on October 1, 2008.

Future Changes

		October 2012: Medicare payments will decrease to hospitals with high readmission rates for patients with infections contracted in an acute care
		hospital. Acute care hospitals that meet standards for reducing HAIs infections and four other quality indicators, will receive more Medicare reimbursement.

		October 2014: The Department of Health and Human Services will cut Medicare payments by 1% to hospitals with high rates of infection and
		other problems. It also will report on its Medicare Web site hospital infection and medical error rates.

Resource

		CMS Roadmap for Implementing Value Driven Healthcare in the Traditional Medicare Fee-for-Service Program

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