Hospitals already saw a 1 percent cut take effect April 1. The cut is scheduled to rise to 2 percent in July. The American Hospital Association said further Medicare payment cuts threaten access to care for patients and communities. The group is asking Congress to stop the cut from going into effect.
In addition to challenges from the ongoing COVID-19 pandemic, the group said hospital prices continue to grow at a lower rate than economic inflation, resulting in a historically poor first quarter for providers financially.
“Unlike other sectors of the economy, hospitals and health systems cannot deflect these increased costs,” the group said in the letter. “A majority of payments to hospitals and health systems are dependent on Medicare and Medicaid — which reimburse hospitals less than the cost of providing care and are nonnegotiable, fixed reimbursement rates.”
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