AHA voices concern over site-neutral payment policies

The American Hospital Association detailed its concern with a site-neutral payment policy that reduces Medicare payments for services furnished in new off-campus hospital outpatient departments in a letter to Republican leaders of the House Energy and Commerce Committee.

The payment reduction is part of the Bipartisan Budget Act of 2015. Under the provision, off-campus outpatient facilities that are bought or set up after the date the bill takes effect will not be eligible for reimbursements under the outpatient prospective payment system.

In addition to opposing the payment reduction provision of the Bipartisan Budget Act, the AHA also encouraged Congress to reject any further site-neutral payment provisions.

"The AHA and the hospital field are extremely concerned about site-neutral payment proposals that would reimburse hospitals at the payment rates of facilities with lesser clinical capabilities," wrote Tom Nickels, AHA executive vice president.

The AHA sent its letter in response to a request for feedback on Section 603 of the Bipartisan Budget Act and other site-neutral payment proposals.

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