Hospitals Push Back Against ‘Site-Neutral’ Medicare Funding Proposals

Health systems are pushing back against proposals to change reimbursement rates for hospital outpatient departments.

In recent years, some advocates have said Medicare could save billions by moving to “site-neutral” policies, which would mean hospital outpatient departments and physicians offices would be reimbursed at the same rate, Healthcare Executive reports.

Lawmakers discussed the topic at a meeting of the House Energy and Commerce Subcommittee on Health. Some lawmakers argue that physicians’ offices are providing the same services as some hospital outpatient departments or hospital-owned clinics.

Hospitals are arguing against such policies, saying they would add to the financial difficulties many hospitals are struggling with after three years of the COVID-19 pandemic. Ashley Thompson, the American Hospital Association’s senior vice president of public policy analysis and development, testified at the hearing and argued against site-neutral proposals.

“There is nothing ‘neutral’ about site-neutral policies,” Thompson said at the hearing. Read more.

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