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Published ahead of print on March 30, 2005
J Am Soc Nephrol 16: 1172-1176, 2005
© 2005 American Society of Nephrology
doi: 10.1681/ASN.2004110950

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Fast Track

Economic Impact of Case-Mix Adjusting the Dialysis Composite Rate

Richard A. Hirth, Erik C. Roys, John R.C. Wheeler, Joseph M. Messana, Marc N. Turenne, Rajiv Saran, Alyssa S. Pozniak and Robert A. Wolfe

Kidney Epidemiology and Cost Center, Department of Biostatistics, The University of Michigan, Ann Arbor, Michigan

Address correspondence to: Dr. Richard Hirth, Kidney Epidemiology and Cost Center, The University of Michigan School of Public Health, 315 West Huron, Suite 240, Ann Arbor, MI 48109-4262. Phone: 734-936-1306 or 734-998-6611; Fax: 734-998-6620; E-mail: rhirth{at}umich.edu

The Medicare program reimburses dialysis providers a flat rate for a bundle of services that comprise the basic dialysis treatment. This payment system is being modified to incorporate case-mix adjustment for age and body size, which have been shown to influence dialysis costs. This study simulated the economic impact of the recently issued Medicare rule on case-mix adjustment by estimating the variation in payments across patients, facilities, and broad classes of facilities. Case-mix adjustment results in considerable patient-level variation in payments ($12.99 SD in case-mix adjusted payments). The variation across dialysis facilities is smaller but still economically significant ($3.77 SD). However, there was little evidence that particular classes of facilities (e.g., ownership, chain membership, size) will be substantially advantaged or disadvantaged by case-mix adjustment. There do seem to be modest changes in the regional distribution of payments.




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