There is considerable data showing that disparities in payment across sites of service increase costs to patients, insurers and taxpayers as well as result in marketplace consolidation that limits patient choice by reducing access to care in the community-setting.

June 29, 2021

PAI-Avalere Health Report on Trends in Physician Employment and Acquisitions of Medical Practices in 2019-2020

A study released by PAI and conducted by Avalere Health shows that hospital systems and other corporate entities continued to drive consolidation in healthcare by aggressively acquiring physician practices throughout 2019 and 2020, especially during the last half of 2020 at the height of the COVID-19 pandemic.  The study’s findings include: Only 30 percent of […]

June 10, 2021

ASCO: Study Finds Shift to HOPD Leads to Substantially Higher Chemotherapy Costs

In 2014, ASCO published data on the impact of site of service and chemotherapy costs. In this updated study, ASCO takes another look at the shift towards to the hospital outpatient department (HOPD) setting and the subsequent impact on costs in commercially insured patients. Specifically, ASCO examined chemotherapy claims by a large national payor from […]

February 24, 2021

Health Services Research: Hospital‐physician integration and Medicare’s site‐based outpatient payments

A recent study examined the relationship between Medicare’s site-based outpatient billing policy and hospital-physician integration, using Medicare claims data from 2010 to 2016. The study estimated the dollar value associated with hospitals acquiring physician practices or employing physicians by using each physician’s bundle of Medicare services. Overall, the study found the financial incentive was large: […]

February 23, 2021

Health Savers Initiative: Equalizing Medicare Payments Regardless of Site-of-Care

A joint venture between the Committee for the Responsible Federal Budget, Arnold Ventures, and West Health recently released a policy brief recommending policymakers consider “Equalizing Medicare Payments Regardless of Site-of-Care” to reduce health costs for households, businesses, and the federal government. In part, the authors argue: “higher payments are difficult to justify when offered to […]

February 22, 2021

Employee Benefit Research Institute: Location, Location, Location: Cost Differences in Health Care Services by Site of Treatment — A Closer Look at Lab, Imaging, and Specialty Medications

It is estimated that 20–30 percent of overall health care spending may be wasteful. The Feb. 18 edition of EBRI’s Issue Brief focuses on waste related to pricing failures when it comes to lab; imaging; and special medications for conditions such as multiple sclerosis, rheumatoid arthritis, and other inflammatory disorders. Takeaways:  In the aggregate, employers […]

April 29, 2020

Community Oncology Alliance Practice Impact Report, April 2020

The 2020 Community Oncology Practice Impact Report documents that 1,748 community oncology clinics and/or practices have closed, been acquired by hospitals, merged, or reported financial struggles since 2008. Data also shows 20.8% increase in practices merging with, or being acquired by, another community oncology practice and/or acquired by a corporate entity since 2018. Read the […]

January 21, 2020

Employee Benefit Research Institute: Cost Differences for Oncology Medicines Based on Site of Treatment

Previous research demonstrates that payments from third-party payers for infused oncology medicines are higher when care is provided in hospital outpatient departments (HOPDs) compared with physician offices (POs). Some have speculated this is due to differences in patient characteristics and treatment regimens between the two sites of care. This study employed a novel analytical approach […]

October 14, 2019

JAMA Network: Trends in Medicare Payment Rates for Noninvasive Cardiac Tests and Association With Testing Location

In settings in which reimbursement depends on test location, higher hospital-based vs practice-based payments were associated with greater proportions of outpatient noninvasive cardiac tests performed in hospital-based locations. A recent study found that site-neutral payments may offer an incentive for testing to be performed in the more efficient location. Read the Study: Trends in Medicare […]

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