Hospitals Outpatient Payment or “Site-Neutral” Policies


The Bipartisan Budget Act (BiBA) of 2015 enacted site-neutral payment reductions Medicare services that are furnished in newer off-campus “non-excepted” provider-based hospital outpatient departments (HOPDs) that are not dedicated emergency department. Such HOPDs would not be eligible for reimbursements from the Centers for Medicare & Medicaid Services’ (CMS) outpatient prospective payment system (OPPS) beginning Jan. 1, 2017, and instead would be paid under another applicable Part B payment system. Under CMS’s proposed/final regulations for implementing the site-neutral policies in BiBA, as of Jan. 1, 2017, new off-campus HOPDs would be paid nothing. This proposal/rule will prevent hospitals from being able to provide necessary, innovative and high-quality health care to their communities.


To help correct this, hospitals and health systems can join the AHA Advocacy Alliance for Coordinated Care. For more information, visit:




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