announcedmandatoryepisode-based

RO Model

Radiation Oncology Model

The Radiation Oncology (RO) Model aims to improve the quality of care for cancer patients receiving radiotherapy (RT) and move toward a simplified and predictable payment system. The model tests whether prospective, site-neutral, modality-agnostic, episode-based payments reduce Medicare expenditures while preserving or enhancing the quality of care for Medicare beneficiaries.

Innovation

Prospective, site-neutral, modality-agnostic, episode-based payments that are split into professional and technical components, establishing a common national base payment amount regardless of the setting where care is furnished.

The Problem

The lack of site neutrality for payments; incentives that encourage volume of services over the value of services; and coding and payment challenges in radiotherapy.

The Solution

Changing the way RT services are currently paid from fee-for-service to prospective, site-neutral, modality-agnostic, episode-based payments to incentivize physicians to deliver higher-value RT care.

Expected Outcomes

Reduced Medicare expenditures while preserving or enhancing the quality of care for Medicare beneficiaries.

Model Goals

  • Improve the quality of care for cancer patients receiving radiotherapy
  • Move toward a simplified and predictable payment system
  • Reduce Medicare expenditures while preserving or enhancing quality of care

Patient Eligibility

Medicare beneficiaries receiving radiotherapy for included cancer types.

  • Must be receiving radiotherapy for included cancer types
  • Must receive a RO Model Beneficiary Notification Letter

Provider Eligibility

RT providers and suppliers that furnish RT services within randomly selected CBSAs.

  • Must furnish RT services within randomly selected CBSAs
  • Must be a Medicare-enrolled PGP, HOPD, or freestanding radiation therapy center
  • Must participate as a Professional, Technical, or Dual participant

Care Categories

Oncology

Bone CancerBrain CancerBreast CancerLung CancerProstate Cancer

CMS Benchmarks & Thresholds

financial

Professional Component Discount Factor0.035%
Technical Component Discount Factor0.045%
Incorrect Payments Withhold (Professional Component)0.01%
Incorrect Payments Withhold (Technical Component)0.01%
Quality Withhold (Professional Component)0.02%
Episode Payment Installments2
Beneficiary Cost-Sharing Rate0.2%
Quality Withhold (Professional Component) in PY10%
Patient Experience Withhold (Technical Component)0.01%

operational

Episode Duration90
Earliest Implementation Date2023-01-01
Original Prohibited Start Date2022-01-01

quality

Number of Quality Measures4
Number of Cancer Types for Clinical Data Submission5

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