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Special Report



       ing Interoperability program (formerly  already  have  available,  which  would  or  penalties  could  be  phased-in  ini-
       the Medicare and Medicaid Electronic  enhance  transparency  about  existing  tially for reporting the attestation mea-
       Health  Record  Incentive  Program).  practices.                   sures  or  other  hospital  information,
       More  specifically,  the  HRSP  could                              and then could be expanded to include
       optimize  new  and  existing  authorities   In addition, HHS says that MRAP  manufacturer resilience ratings. Simi-
       to link Medicare payments and/or pen-  could provide HRSP with information  larly,  the  incentives  and/or  penalties
       alties  to  hospitals  based  on  a  hospital  about  the  reliability  of  manufacturers  could  be  based  on  the  scorecard,  or
       scorecard that would be a combination  that  hospitals  purchase  from,  thus  could be based on achieving a certain
       of attestations and ratings refl ecting the  expanding  the  hospital  scorecard  to  base  rating  or  improvements  in  scorecard
       hospitals’ achievement and progress in  purchasing  decisions  on  manufacturer  ratings or other factors such as size or
       adopting practices that promote supply  resilience as well as price. As a whole,  volume of the hospital, with attention
       chain  resilience  or  prevent  shortages.  the scorecard developed by the HRSP  to smaller hospitals that lack the pur-
       Hospital  attestations  or  other  hospital  could  include  lagging  and  leading  chasing  power  of  larger  hospitals  or
       resilience-oriented activities that could  indicators of practices that promote sup-  health  systems.  HRSP  payment  and/
       be  considered  include  hospital  inven-  ply  chain  resilience  among  hospitals,  or penalty amounts would have to be
       tory management practices (stockpiling  middlemen, and manufacturers. HRSP  large enough to incentivize change and
       or buffer stocks) and hospital contract-  could  develop  the  scorecard  for  pay-  cover the cost and benefi ts of engaging
       ing  practices  with  middlemen  (e.g.,  ments  and/or  incentives  for  an  initial  in practices that promote supply chain
       inclusion of effective failure-to-supply  set of drugs that are considered eligible  resilience, while being fi scally respon-
       clauses,  minimum  purchasing  volume  and  eventually  expand  to  other  pro-  sible to the program. If successful, the
       requirements,  long-term  contracts)  ducts prioritized by MRAP or CMS.  HRSP could be expanded to the out-
       that  promote  supply  chain  resilience.                          patient  setting  or  to  include  medical
       Attestation measures could also consider   Under  the  HHS  proposal,  the  devices. “Ultimately, this would promote
       whether  the  hospital  purchases  from  scorecard  could  be  scaled  based  on  investment in resiliency at the manu-
       diverse  sources,  including  domestic  various factors, including but not limi-  facturer  level,  and  facilitate  market
       ones, thus supporting redundancy in the  ted  to  hospital  size,  hospital  attesta-  participation  or  support  market  entry
       market. The attestation measures could  tions,  and  hospitals’  performance  on  for  multiple  or  more  diversifi ed  pro-
       be based on information that facilities  the hospital scorecard. Incentives and/  ducers,” said HHS in its white paper.

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