Medicare Issues Final Rule for the End- Stage Renal Disease Prospective Payment System

Sheppard Mullin Richter & Hampton LLP

The Centers for Medicare and Medicaid Services (“CMS”) released a final rule on November 1, 2011, that will update Medicare policies and payment rates for dialysis facilities. According to CMS these provisions will strengthen “incentives for improved quality of care and better outcomes for beneficiaries diagnosed with End-stage Renal Disease (“ESRD”). The final rule will affect payments for dialysis treatments furnished on or after January 1, 2012 under the bundled ESRD Prospective Payment System that was implemented in calendar year 2011. CMS estimates that payments to ESRD facilities will total $8.3 billion next year.

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