On Friday, CMS released its draft 2009 Inpatient Prospective Payment System, and the document indicates significant payment increases for orthopedic procedures. The rate at which the payments are increasing is also up when compared to 2008.
Per the proposal:
-Spine fusion payments will increase 7% for 2009 (compared to 4% in 2008)
-Kyphoplasty/vertebroplasty will increase 4% for 2009 (compared to 1% in 2008)
-Recon, on average, will increase 7% for 2009 (compared to 4% in 2008)
The impact of these proposed payment increases on individual companies will vary case by case. Spinal fusions are performed on younger patients than reconstructive generally and therefore are impacted less directly from medicare payment changes. Nevertheless, with potential follow through from insurers, the proposed payments are indicative of the industry standing on solid ground. We note that the proposed payment increases support less-invasive procedures (e.g. the kyphoplasty/vertebroplasty increase rate proposal quadrupled.)
It should also be noted that these payment rates aren't final and are subject to revision. Comments will be accepted until June 13th, and the final rule is expected to be released in August.
