Capsules: Hospital Officials Complain About Medicare Efforts On Observation Care; Grassley: Who Approved These Hospital CEO Bonuses?

Now on Kaiser Health News' blog, Mary Agnes Carey reports on Mediare payment issues explored during a Senate Finance Committee hearing: "Recovery Audit Contractors – or RACs – uncover and collect improper payments made to hospitals, physicians, clinics and other providers. In 2011 the audits resulted in the return of nearly a half a billion dollars to the Medicare Trust Fund. 'We need to build on this success, but we can't overburden legitimate providers who play by the rules,' Finance Committee Chairman Max Baucus, D-Mont., said Tuesday. 'We need balance'" (Carey, 6/26).

Also on the blog, Jay Hancock reports on the response by Sen. Charles Grassley, R-Iowa, to KHN's coverage of hospital CEO bonuses: "Sen. Charles Grassley, a longtime member of the Senate Finance Committee and frequent critic of nonprofit hospitals, wants to know whose idea it was to pay hospital CEOs annual bonuses surpassing a million dollars in some cases" (Hancock, 6/25). Check out what else is on the blog.

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