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

quality resulting from the implementation of the incentive<br />

payment or shared savings program; and [14] requirements<br />

(including timeframes) for the hospital to take corrective<br />

action based on the reviewer’s recommendations.<br />

(2) Participating physicians and payment amounts<br />

The proposed exception included a requirement that the<br />

incentive payment or shared savings program be structured<br />

to require physician participation in the program in pools<br />

of five or more physicians, with payments being distributed<br />

to members of each pool on a per capita basis. Under the<br />

proposed exception, all physicians participating in the<br />

program must be on the medical staff of the sponsoring<br />

hospital at the commencement of the program. Most<br />

commenters objected to these requirements, but did not<br />

provide clear suggestions regarding how to address our<br />

concern regarding disguised payments that reward referrals<br />

or other business generated by the physician in the absence<br />

of such structural requirements. Therefore, we are seeking<br />

specific comments on alternatives to these participation<br />

and payment restrictions, as well as other safeguards that<br />

we could include in an exception(s) if we were to omit the<br />

“five-physician pool,” per capita payment distribution,<br />

and/or medical staff membership requirements. We request<br />

comments as to [15] whether, if pools of less than five<br />

399

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