Medicare's New Policy For Recalled, Replaced Devices

Law360, New York (November 7, 2007, 12:00 AM EST) -- Inpatient hospitals are subject to a new Medicare policy regarding payment for procedures involving medical devices that are recalled or replaced at no cost or reduced cost to the hospital, effective Oct. 1, 2007. The provision is included in the Center for Medicare & Medicaid Services’ (“CMS”) sweeping final Medicare inpatient prospective payment system (“IPPS”) rule for fiscal year 2008, which was published Aug. 22, 2007 (the “Final Rule”).

The new policy was adopted in response to a number of recalls of implantable medical devices in...
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