Hospital Outpatient Department (HOPD) Costs Higher than Physician Offices Due to Additional Capabilities, Regulations

Americans rely heavily on hospitals to provide 24/7 access to care for all types of patients, to serve as a safety net provider for vulnerable populations and to have the resources and skills needed to respond to disasters.

These roles are not explicitly funded; instead they are built into a hospital’s overall cost structure and supported by revenues received from providing direct patient care.

Other care sites don’t share these roles or bear these costs, yet some policymakers want to make total payment for a service provided in a hospital the same as when a service is provided in a physician office.