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Obama taps Berwick to head CMS

By Healthcare Finance Staff

Healthcare IT leaders are hailing President Obama's nomination of Donald Berwick, MD, to lead the Centers for Medicare and Medicaid Services as a signal of the administration's commitment to quality.


In nominating Berwick to oversee the largest payer in the country, close on the heels of landmark healthcare reform, Obama also focused on reducing costs. "Dr. Berwick has dedicated his career to improving outcomes for patients and providing better care at lower cost," the president said. "That's one of the core missions facing our next CMS administrator, and I'm confident that Don will be an outstanding leader for the agency and the millions of Americans it serves."
 Reaction from providers was positive.
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The American Hospital Association applauds President Obama's choice," said Rich Umbdenstock, president and CEO of the American Hospital Association in a statement Monday.  "Don is a true leader in healthcare quality improvement and brings a wealth of knowledge and experience to CMS."


Susan DeVore, president and CEO of the Premier healthcare alliance, which is made up of 2,300 U.S. hospitals and more than 66,000 other healthcare sites, said Berwick's nomination signals the White House's commitment to implementing reforms while improving healthcare quality. "While with the Institute for Healthcare Improvement, Dr. Berwick earned respect and admiration from all sectors of healthcare for his ability to understand what drives errors and inefficiencies, challenge the status quo and overcome barriers to achieve continuous quality improvements," DeVore said.


In its statement, the Medical Group Management Association, which represents 21,500 members, also focused on quality, safety and cost. "As healthcare organizations and professionals shape a reformed healthcare delivery system, his knowledge and proven leadership will be critical to success," the MGMA said. "His knowledge of quality improvement also offers great opportunities for improving the efficiency of CMS' internal operations – a critical factor in reducing administrative costs."


CMS has been without a permanent chief since the departure of Mark McClellan, MD, in 2006. Under McClellan and during the tenure of Health and Human Services Secretary Michael Leavitt, who served in the Bush administration, CMS undertook several healthcare IT projects aimed at improving care and cutting costs.


Berwick would be taking charge at a critical time for CMS. Medicare with its 45 million beneficiaries, faces payment reimbursement reforms, while Medicaid with 60 million beneficiaries is due to grow by 16 million more over the next 10 years as the healthcare reform law expands eligibility to people with income up to 133 percent of the federal poverty level.


Senate Finance Chairman Max Baucus, (D-MT) said in a statement Monday he hoped for "an expeditious review" of Berwick's nomination in the Finance Committee. But Washington observers predicted Berwick might face a tough confirmation fight in the Senate, which is still divided over the new healthcare reform law.

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