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Hospitals are fighting a Medicare payment fix that would save tax dollars

Hospitals are resisting a provision in a House-passed bill that aims to equalize Medicare payments for medical services, potentially saving the program billions of dollars. This provision, known as site-neutral payment, would pay the same rates for medical services regardless of where they are provided. Click here for article.

  • Medicare currently pays hospitals about double the rates it pays other providers for the same services.

  • The House legislation, if implemented, would save Medicare an estimated $3.7 billion over a decade.

  • Hospitals argue that site-neutral payments would lead to job cuts, service reductions, or facility closures, especially in rural areas.

  • Advocates for site-neutral payments argue that hospitals exploit the payment disparity to increase revenue and consolidate, while also pointing out bipartisan concern about its potential impact on rural hospitals and patients' access to care.

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