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At the end 2006, the Centers for Medicare and Medicaid Services (CMS) announced that it will be conducting two gainsharing demonstration programs in an attempt to improve patient care and generate greater efficiencies for hospitals. The gainsharing demos, if properly structured, would provide financial incentives to physicians for enhanced clinical practices that improve patient outcomes.

MDMA's concern is that the demonstration programs may be structured in way that would encourage physicians to limit the kinds of medical devices used in treating patients or to limit actual care. Doctors would then receive a percentage of the total cost "savings." MDMA will continue to educate lawmakers, the Administration, and the industry on the pitfalls of device contract gainsharing (DCG) and oppose any attempts to implement device contract gainsharing.

What is MDMA doing?

MDMA has been busy educating members of Congress and the Administration about the risks of DCG arrangements and has organized multiple fly-ins for its members and other stakeholders to meet with lawmakers. MDMA is the only device association that has been actively opposed to any gainsharing demonstration project that included devices. Many of MDMA's member companies also participate in the association's gainsharing task force, providing input, shaping policy, and playing an important role with efforts in Washington.  Lawmakers must hear from device manufacturers and physicians - device contract gainsharing will be dangerous for patients and detrimental to the future of device development. If sanctioned, DCG will decrease quality for patient care, compromise the physician-patient relationship, and stifle innovation driven by smaller, entrepreneurial medical device companies.