Alliance For Site Neutral Payment Reform Applauds Inclusion of Site Neutral

Payment Reforms in President’s FY2020 Budget

Washington, DC, March 13, 2019 --(PR.com)-- The Alliance For Site Neutral Payment Reform, a
coalition of healthcare providers, insurers, employers and patient advocacy groups established to address
growing access to care issues driven by disparities in payment rates for identical clinical services
provided in different healthcare settings - today commended provisions in President Trump's FY2020
Budget to expand site neutral payments for all off-campus hospital-owned physician practices.

Under the proposal, Medicare would pay all hospital-owned physician offices located off-campus at the
physician office rate, which the Administration estimates would save approximately $28.7 billion over
ten years. The budget also proposes to further eliminate payment disparities in outpatient care by applying
site neutral payments for certain services performed at on-campus HOPDs which would result in $131.4
billion in savings.

Current policies allow “grandfathered” HOPDs to charge significantly higher rates than physician offices
for performing the exact same services, resulting in unnecessary costs to taxpayers and Medicare
beneficiaries. According to a November 2017 report by Avalere, Medicare paid an additional $2.7 billion
on services and patients spent $411 million more in out-of-pocket costs when certain services were
delivered in a hospital-owned setting.

The Alliance commends the proposal as a pro-patient policy that would lower out-of-pocket costs and
preserve both patient access and choice. Data show disparities in Medicare payments across care settings
drive up patient costs through consolidation in the healthcare marketplace resulting in higher premiums
and co-payments.

The Alliance supports payment parity across site of service in order to decrease Medicare and commercial
spending, ensure patients receive the right care in the right setting, lower taxpayer and beneficiary costs
and increase patient access. While patients need to access various outpatient services in hospital and
non-hospital settings, often simultaneously, the Alliance encourages site neutral payment policies that are
fiscally wise and enhance patients' healthcare options.

The Alliance For Site Neutral Payment Reform represents providers, payers, employers and consumer
groups. Learn more at siteneutral.org.

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Contact Information:
Alliance For Site Neutral Payment Reform
Ellen Almond
703-548-0019
Contact via Email
http://www.siteneutral.org/

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/779792

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