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

exception (or exceptions). We are also seeking additional<br />

comments regarding [46] the inclusion of an audit<br />

requirement with respect to the calculations of cost<br />

savings and payment amounts under the incentive payment or<br />

shared savings program. Many commenters supported such a<br />

requirement, and stated that we should permit the audit to<br />

be performed “in-house.” We are seeking comments here<br />

regarding [47] whether such an audit could satisfy our<br />

concerns regarding the objectivity and accuracy of the<br />

audit. Specifically, we seek comments on [48] whether<br />

parties should be required to monitor and track each cost<br />

savings or quality measure and, if so, how we should<br />

address the need for transparency and accountability.<br />

(2) Sharing of global savings<br />

Of particular concern from a fraud and abuse<br />

perspective is the sharing of total (or global) savings for<br />

a particular department or service line. Many commenters<br />

urged us to permit hospitals to share with physicians a<br />

percentage or share of the total savings in a particular<br />

department or service line, calculated from one period to<br />

another. The calculation and sharing of such global<br />

savings would not involve individually-tracked and measured<br />

performance measures, a cornerstone of the programs that<br />

have received favorable advisory opinions from the OIG to<br />

410

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