News Headlines Article

Hospitals sue over site-neutral payment policy
Modern Healthcare

The American Hospital Association on Tuesday led a lawsuit against the Trump administration over the CMS‘ final rule imposing a site-neutral payment policy, which cuts some Medicare rates for outpatient hospital sites to match the rates for physicians’ offices.

The lawsuit, filed in the U.S. District Court for the District of Columbia, challenges the “serious reductions to Medicare payment rates” as executive overreach. The roughly 60% rate reduction will go into effect Jan. 1 and the CMS has estimated it will save Medicare $610 million and patients about $150 million in lower co-payments — a $760 million reduction for hospitals in 2019.