Hospitals baffled over why Medicare continues site-neutral payments, 340B cuts despite adverse court rulings

HFMA November 6, 2019
Rich Daly

• Hospital advocates blasted what one sector leader described as “illegal” payment cuts included in a new payment rule.
• Hospitals in New England and those with the largest 340B payments will face the biggest cuts under the provisions.
• Hospital advocates identified how CMS should restore 340B cuts if the agency’s appeal fails.

Medicare’s decision to continue two large hospital payment cuts that had been struck down by federal courts drew bewildered responses from large advocacy groups.

The final rule for the Medicare hospital Outpatient Prospective Payment System (OPPS), issued Nov. 1, retained $810 million in a previously proposed annual cut for clinic visits furnished in off-campus hospital outpatient departments (HOPDs) and a $1.6 billion payment cut to the 340B...

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