WASHINGTON – The Alliance for Site Neutral Payment Reform – a coalition of healthcare providers, insurers, employers and patient advocacy groups established to address growing access to care issues driven by disparities in payment rates for identical clinical services provided in different healthcare settings – today commended a provision in President Trump’s FY2019 Budget to expand site neutral payments for all hospital-owned physician practices.
Under the proposal, Medicare would pay all hospital-owned physician offices located off-campus at the physician office rate, which would save an estimated $33.9 billion over ten years.
The Alliance commends the proposal as a pro-patient policy that would lower out-of-pocket costs and ensure both patient access and choice. Data show disparities in Medicare payments across care settings drive up patient costs through higher premiums and copayments.
The Alliance supports payment parity across site of service in order to decrease Medicare and commercial spending, ensure patients receive the right care in the right setting, lower taxpayer and beneficiary costs and increase patient access. While patients need to access various outpatient services in hospital and non-hospital settings, often simultaneously, the Alliance encourages site neutral payment policies that are fiscally wise and enhance patients’ healthcare options.