Becker's Healthcare December 3, 2025
Sophie Eydis

Site-neutral payment is emerging as one of the most consequential Medicare reforms for musculoskeletal care. By equalizing reimbursement across hospital outpatient departments, ASCs and physician offices, policymakers aim to reduce spending, but orthopedic leaders warn the consequences for practice economics, ASC strategy and patient access will be far-reaching.

Industry leaders say site-neutral rules could reshape orthopedics in five key ways:

1. CMS’ proposed 2026 site-neutral payment rule would significantly narrow reimbursement disparities and force closer ASC-hospital collaboration: CMS’ 2026 Hospital Outpatient Prospective Payment System rule advances a major step toward site-neutral payment, aiming to reduce the long-standing Medicare payment gap between hospitals and physician offices.

Hospitals currently receive about 60% higher Medicare payments for similar services due to facility-fee differences...

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