Experts Say SGR was Destined to Fail

According to experts, the sustainable growth rate (SGR) Medicare payment formula was “almost certain to fail” because it was “flawed from the beginning, due largely to a lack of precedent for tying such a formula to economic growth.” Because the economy was strong in the mid-90’s, many people did not think it would give large fee increases like it did later when the economy slowed down. Experts also agree that the SGR formula failed to limit volume growth and that basing the formula on overall physician spending meant that individual doctors had no incentives to make their practices more efficient since no single provider would have any effect on overall payments.

The move to repeal the SGR made some headway in Congress last year.

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One thought on “Experts Say SGR was Destined to Fail

  1. Pingback: Monday Morning Recap | hmsabc

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