
Proposals to reduce Medicare payment rates for hospital outpatient departments by aligning them with payment rates for independent physician offices and ambulatory surgery centers are based on the false assumption that Medicare overpays hospitals for outpatient services, when in fact hospitals receive only 84 cents for every dollar they spend caring for Medicare patients, resulting in a staggering negative 17.5% Medicare outpatient margin, AHA and hospital leaders told congressional and other stakeholders at a Capitol Hill briefing June 26.