CMS is also encouraging state Medicaid programs to adopt these. Medicare won't pay the extra costs for these hospital-acquired conditions for patient discharges on or after Oct. 1, 2008: • Stage 3 and 4 pressure ulcers; • Falls and trauma; • Surgical site infection after bariatric surgery for obesity, certain orthopedic procedures, and bypass surgery (mediastinitis); • Vascular-catheter associated infection; • Catheter-associated urinary tract infection; • Administration of incompatible blood; • Air embolism; • Foreign object unintentionally retained after surgery; • Deep vein thromboses and pulmonary emboli associated with knee and hip replacement; • Certain manifestations of poor glycemic control. The bottom line: "Medicare will no longer pay the higher MS-DRGs arising from these selected conditions if they arose in the course of an admission," states the Centers for Medicare & Medicaid Services in a recent letter to state Medicaid directors encouraging them to coordinate state Medicaid payment policies with Medicare's no-pay policy for never events.