The Centers for Medicare & Medicaid Services (CMS) issued a final rule on January 5, 2011, that adjusts Medicare payments to renal dialysis facilities based on how well they meet or exceed performance standards for quality measures. The final rule establishes the performance standards, scoring methodology, and incentive payment structure under the End-Stage Renal Disease (ESRD) Quality Incentive Program (QIP). The final rule also provides for public disclosure of individual dialysis facility performance scores. The ESRD QIP was mandated by Congress in the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), which also required CMS to implement a bundled prospective payment system (PPS) for ESRD facilities to replace the existing payment methodology based on a composite rate, plus separately billable items and s ervices. CMS began paying dialysis facilities under the ESRD PPS on January 1, 2011. As required by MIPPA, the ESRD QIP payment adjustments will apply to payments for services on or after January 1, 2012. For more information, please click here.