Proposed legislation is gaining support among employer groups that could affect hospital-owned medical groups and their ability to charge higher rates for services than private providers. The legislation referred to is the Lower Costs, More Transparency Act (H.R. 5378), which includes, among other things, requirements for “site-neutral” payments for drug administration in off-campus hospital outpatient departments. This legislation, which has seen bipartisan support, is set for discussion on the House floor and could be voted on as early as Monday.
These “site-neutral” payments mean that an organization could not charge more for a service just because it is owned by a hospital, creating a more level playing field with private providers offering the same services. While the legislation initially only applies to Medicare, advocates argue that it could potentially spill over and reduce costs for commercial plans. This is of particular interest since employers observe that hospital-owned practices often charge additional fees, leading to an increase in costs.
The Act is not without its critics, however. Some suggest that imposing site-neutral payments could jeopardize hospital access as these charges often subsidize other hospital operations. As the proposed legislation continues its progression through the house, the discussions and debates around “site-neutral” payments and their implications promise to be a focal point.
More on this can be found on Bloomberg Law.