HHS site-neutral payments are legal, appeals court rules - ModernHealthcare.com

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A panel of appellate judges on Friday ruled that HHS' site-neutral payment policy for 2019 can go forward, overturning a lower court decision.

The United States Court of Appeals for the District of Columbia Circuit ruled that HHS' payment cuts to hospitals' off-site outpatient departments were legal because the changes were volume-control measures that don't have to be budget-neutral.

The American Hospital Association, Association of American Medical Colleges and several hospital systems had argued that HHS' pay cuts were unlawful because they were not budget-neutral, and a lower court had agreed with them.

As HHS appealed the lower court's decision in favor of hospitals, it agreed to pay hospitals for doctor's visits in 2019. The AHA estimated that implementation of the policy cost providers about $380 million in 2019.

Hospitals have also sued to stop similar site-neutral payment policies from going forward in the final 2020 Hospital Outpatient Prospective Payment System rule.

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HHS site-neutral payments are legal, appeals court rules - ModernHealthcare.com
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