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Dozens of hospitals sue to end site-neutral payment policy
Modern Healthcare

Thirty-eight hospitals sued HHS on Friday over a new rule that cuts Medicare payments for some services provided at off-campus hospital sites.

The lawsuit claims HHS Secretary Alex Azar acted beyond his statutory authority when he cut payment rates for evaluation and management services provided at the hospital sites so that they aligned with those paid to physicians’ offices; the final rule took effect Jan. 1.

“The secretary’s rule is irrational, a patent misconstruction of the Social Security Act and a blatant attempt to circumvent the will of Congress clearly expressed in Section 603,” the complaint said.