Will Hospitals Make The Grade Under New Medicare Payment Plan?

Pres. Obama's healthcare reform law is about to make sweeping changes to the way hospitals get paid through Medicare. Under the plan, hospitals who get high marks for reaching quality benchmarks will be paid more. Hospitals that don't make the grade will be paid less. The Obama administration says these changes will improve quality and efficiency, ultimately saving the system hundreds of billions of dollars.

Right now, hospitals are paid based on the number of procedures they perform, which critics say gives them an incentive to order tests and perform surgeries that aren't needed.