Hospitals Brace for New Medicare Payment Rules

Starting Friday , nearly 800 U.S. hospitals face sweeping new payment rules that could have a direct impact on their bottom line, but not everyone is ready, industry experts say.

The rules will hold hospitals accountable for all the costs of hip and knee replacements for 90 days. If patients recover and go home quickly, hospitals could reap savings. If they have complications or need lengthy stays in a rehab facility, hospitals could owe Medicare instead, starting next year.