Everyone in the healthcare industry is anticipating the complete overhaul of the reimbursement methods to providers. Going down the list of the various Medicare parts, the next in sequence–alphabetically–is “E”. Hence, the new model is named “Medicare Part E”. Currently, Medicare reimburses providers as follows: Part A = Hospital, Skilled Nursing Facility, Hospice and Home Health Services Part B = Physician and ambulatory services, durable medical equipment and mental health Part C = Medicare Advantage Health Plans Part D = Prescription drug coverage What is Medicare Part E? Medicare Part E is addressing patient needs (clinical, social, behavioral, basic needs, coordinated care and care decision making) determined to be critical for patient recovery and to reduce unnecessary hospital readmissions and emergency room visits. Examples of Medicare Part E are the “shared savings” in the form of Accountable Care Organizations, Bundled Payments and Medicare waiver programs.

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