The New York Times editorial on proposed Medicare cuts to off-campus hospital outpatient departments (March 26) fails to reflect the significant differences between hospitals, independent physician offices and other sites of care. These proposed cuts by the administration could threaten access to care for patients in rural and vulnerable communities where hospital-connected care is often the only option available.

 

Hospitals and hospital systems provide 24/7 access to care for all patients, regardless of their ability to pay, unlike others who provide 9 to 5 care for those with insurance. Our doors are open during natural disasters and in tragic episodes of mass violence. The many life-saving roles that hospitals fulfill are not explicitly funded, but instead, are built into a hospital’s overall cost structure.

As the editorial rightly notes, we are far more likely to treat poorer and sicker patients and have to adhere to much higher and stricter regulatory standards. Payment proposals that attempt to treat hospital outpatient departments the same as independent physician offices and other sites of care ignore the very different level of care provided by hospitals and the needs of the patients cared for in that setting.

 

Hospitals already incur negative margins treating Medicare patients. In Fiscal Year 2016, Medicare margins for outpatient services were a record low of negative 14.8 percent, and overall, Medicare margins were a record low of negative 9.6 percent.

 

The fact is that implementing these cuts would be yet another blow for hospitals, health systems and the communities they serve, making it even more difficult to find the resources to meet the ever-changing demands of caring for our patients.  

 

 

Rick Pollack is AHA's President and CEO.

Related News Articles

Headline
The Medicare Payment Advisory Commission Jan. 15 voted to recommend that Congress update Medicare payment rates for hospital inpatient and outpatient services…
Headline
UnitedHealth Group announced Jan. 14 that it launched a six-month pilot program to reduce Medicare Advantage payment processing times by half for rural…
Headline
A Senate Judiciary Committee report released Jan. 12 found that UnitedHealth Group used “aggressive strategies” to maximize its Medicare Advantage risk-…
Headline
The Centers for Medicare & Medicaid Services has released a request for information seeking input on replacing its Medicare claims processing system with a…
Headline
The AHA Jan. 9 urged the Medicare Payment Advisory Commission to consider, during its next meeting Jan. 15-16, higher payment updates for the…
Headline
The application period has opened for hospitals to apply for the latest allocation of Medicare-funded graduate medical education residency slots under Section…