The Centers for Medicare and Medicaid Service (CMS) today released the Comprehensive Care for Joint Replacement Payment Model for Acute Care Hospitals Furnishing Lower Extremity Joint Replacement Services Proposed Rule. The new model, called the Comprehensive Care for Joint Replacement (CCJR) Model, is a 5-year plan to test a new system for how CMS reimburses hospitals for hip and knee replacement surgeries that currently cost approximately $7 billion a year.
The test program will be mandatory for more than 800 U.S. hospitals covering 75 regions and affect approximately 25 percent of surgical procedures in the United States. CMS hopes to save $150 million under the program that, if approved, would begin January 1, 2016.
MDMA will discuss this proposed rule during our next Reimbursement Working Group call. For additional background information on the CCJR Model, please click here. To view a press release announcing the new initiative, please click here.