Five hospital groups sent a letter (pdf) to Congress opposing any legislation that would cap total payments for non-emergency department evaluation and management in hospital outpatient departments.
The groups — American Hospital Association, Association of American Medical Colleges, Catholic Health Association of the Untied States, Federation of American Hospitals and National Association of Public Hospitals and Health Systems — based their letter on a January recommendation from the Medicare Payment Advisory Commission.
MedPAC's proposal would reduce Medicare payment rates for non-emergency department E/M services provided in HOPDs by roughly 71 to 75 percent. In essence, E/M services would be capped at the rate paid to physicians for providing the services in their offices, and hospitals would receive the difference between the physician payment in the office and the physician payment in the hospital.
The groups argued that if the proposal were made into law, it would reduce access to care for Medicare beneficiaries.
"To pay a hospital — with our emergency department, surgical, nursing, emergency transportation and myriad other costs — the same as a physician office does not make sense," according to the letter. "…Simply put, it is significantly damaging to beneficiaries and the providers on which they rely to enact legislation that will result in such large cuts."
More Articles on Hospital Evaluation and Management Services:
OIG: Vulnerable E/M Services Led to Higher Medicare Costs
AAMC Calls on Lawmakers to Reject Cuts to E&M services
MedPAC Recommends 1% Increase for Hospital Inpatient, Outpatient Services
The groups — American Hospital Association, Association of American Medical Colleges, Catholic Health Association of the Untied States, Federation of American Hospitals and National Association of Public Hospitals and Health Systems — based their letter on a January recommendation from the Medicare Payment Advisory Commission.
MedPAC's proposal would reduce Medicare payment rates for non-emergency department E/M services provided in HOPDs by roughly 71 to 75 percent. In essence, E/M services would be capped at the rate paid to physicians for providing the services in their offices, and hospitals would receive the difference between the physician payment in the office and the physician payment in the hospital.
The groups argued that if the proposal were made into law, it would reduce access to care for Medicare beneficiaries.
"To pay a hospital — with our emergency department, surgical, nursing, emergency transportation and myriad other costs — the same as a physician office does not make sense," according to the letter. "…Simply put, it is significantly damaging to beneficiaries and the providers on which they rely to enact legislation that will result in such large cuts."
More Articles on Hospital Evaluation and Management Services:
OIG: Vulnerable E/M Services Led to Higher Medicare Costs
AAMC Calls on Lawmakers to Reject Cuts to E&M services
MedPAC Recommends 1% Increase for Hospital Inpatient, Outpatient Services