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<strong>CMS</strong>-1403-FC<br />

through changes in physician clinical or administrative<br />

practices or actual cost savings for the hospital resulting<br />

from the reduction of waste or changes in physician<br />

clinical or administrative practices (73 FR 38553). To be<br />

protected, the program must achieve one or both of these<br />

goals without an adverse effect on, or diminution in, the<br />

quality of hospital patient care services.<br />

(1) Objective medical evidence and independent review<br />

Under the proposed exception, incentive payment and<br />

shared savings programs must be supported by objective,<br />

independent medical evidence indicating that the applicable<br />

cost-savings or quality performance measures would not<br />

adversely affect patient care. We also proposed that<br />

patient care quality measures must derive from <strong>CMS</strong>’<br />

Specifications Manual for National Hospital Quality<br />

Measures. Many commenters objected to this limitation;<br />

however, the comments, for the most part, did not contain<br />

suggestions regarding other appropriate lists of quality<br />

measures or whether (and in what manner or under what<br />

circumstances) we should permit parties to establish their<br />

own quality measures for inclusion in a protected incentive<br />

payment or shared savings program. We are seeking comments<br />

on this issue, including [10] how we might avoid protecting<br />

payments based on sham measures or measures that do not<br />

396

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