In 2006, all the major U.S. dialysis providers face many challenges. Having gone through a period of intense consolidation and constant decrease operating margins, they are now trying to understand what lies ahead. With more than 80% of their patients are covered by the End-Stage Program Medicare renal disease (ESRD) program and Medicare reimbursement barely covering costs, these providers are increasingly relying on supplementary benefit for certain injectable drugs, as well as a small percentage of patients with private insurance, financial viability. However, both of these sources of profitability came under pressure. Current projects demonstrate Center for Medicare and Medicaid Services (CMS) was to open the way for dramatic changes in the reimbursement landscape, and private payers are becoming more strict on what they will pay and how much they will pay. These actions CMS and private payers have been assured, that will have far-reaching consequences for patients, providers, and ESRD program as a whole. Change was inevitable and uncertainty to suppliers has created a big problem. "Hide
by Stefanos Zenios, Elizabeth Rodriguez, Melanie Wyld Source: Stanford Graduate School of Business 27 pages. Publication Date: April 7, 2004. Prod. #: OIT51-PDF-ENG
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