Proposed Medicare cuts jeopardize access to care for patients and communities 

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An unprecedented combination of challenges over the past three years, including labor shortages, soaring healthcare delivery costs, and supply chain disruptions, poses serious risks to the capacity of America’s hospitals and healthcare systems, upon which communities across the country depend. Bringing. Providing quality, accessible care 24/7 for everyone who needs it. These headwinds include an aging population in need of healthcare, and new facilities and technology upgrades to combat growing cybersecurity threats and ensure patients have access to cutting-edge scientific advances. It also includes the need to invest in
In times of crisis, this is not the time to expand on flawed policies that undermine the unique services hospitals provide to patients and the important role they play in their communities.

Under consideration by Congress some laws This will result in billions of dollars in additional savings in Medicare payments for services provided by hospital outpatient departments (HOPDs). The enactment of these false so-called ‘site-neutral’ policies will reduce patient access to essential health services, especially in rural and other underserved communities.

Here are five reasons why these proposals are flawed and should be rejected.
Site-neutral payment policies are based on the erroneous assumption that hospitals are overpaid for outpatient services provided to Medicare patients. in reality Medicare is significantly underpaid in hospitals For the cost of treating a patient. in fact, AHA survey data shows that In 2020, hospitals received just 84 cents for every dollar spent on Medicare patient care.Even without these newly proposed cuts, Medicare’s outpatient margin It is already down a staggering 17.5%. in the meantime, Hospital costs increased by 17.5 percent Medicare rates for outpatient care rose only 7.5% from 2019 to 2022.

Patients, especially those in rural and underserved areas, may miss out on treatment in local hospitals. Most of the funding for rural hospitals comes from government payers, with Medicare accounting for almost half of their income.Caused by chronic underpayments in Medicare At least 149 rural hospitals have closed or switched to other types of hospitals In addition, other types of treatment facilities are often completely absent in rural and urban areas where commercial insurers have low patient mixes. Further site-neutral cuts will lead to devastating financial hardships, reduced access to essential services and programs, and more hospital closures.

HOPD treats critically ill, low-income patients with more complex and chronic conditions than those treated in independent clinics or ambulatory surgery centers. This is partly because hospitals are better equipped to deal with complications and emergencies, including access to ICUs and other critical hospital services. It often requires the use of additional resources not typically provided in other medical settings.

Site-neutral proposals do not consider important differences between HOPD and other treatment sites. The cost of care provided by hospitals and health systems takes into account the unique benefits that hospitals and health systems provide to the community. This includes maintaining standby capacity for natural and man-made disasters, public health emergencies, and other unexpected and catastrophic events. Additionally, hospital facilities must comply with a more comprehensive range of licensing, accreditation, and other regulatory requirements than other healthcare facilities. The hospital also provides her round-the-clock emergency care to anyone who walks through her doorstep, regardless of ability to pay or insurance coverage.

Health insurers and private equity firms Most of the doctor acquisitions over the past five years have been held by hospitals, not hospitals. At the same time, as physician poll data shows, increased costs and burdens from policies such as pre-licensing of commercial insurance companies mean that most physicians will be hired rather than run their own clinics. is selected. Clinicians consistently say they want to focus on medical practice and patients, and not have to be responsible for building their own infrastructure, including electronic medical records and liability insurance premium payments.In deals where a health insurer buys a doctor’s practice, the average number of doctors acquired per transaction is more than 10 times higher It’s better for health insurers than any other type of acquirer, including hospitals and health systems, according to the AHA, which analyzed data from Levin Associates.

When people see the blue and white “H” symbol, they think of healing, hope and health. They are relieved to know that help is here. Hospitals and health systems provide care 24 hours a day, 7 days a week, 365 days a year to anyone who needs it.

People have to recognize what is at stake. Congress should reject these harmful proposals and instead work to improve access to essential care for patients and communities across the country.

Rick Pollack is President and CEO of the American Hospital Association.