The ongoing debate over site-neutral payments—proposals to align Medicare reimbursements for outpatient care across hospitals and independent physician offices—continues to heat up.

John Couris, CEO of Tampa General Hospital, admits that the current system is unsustainable: “If we’re being intellectually honest with ourselves, it’s not OK. I get why it needs to change.” 

Medicare currently reimburses hospital outpatient clinics at much higher rates than independent physician offices for identical services leading to unnecessary costs for both taxpayers and patients. Yet, some hospitals are pushing back against these reforms, fearing a loss of revenue. The reality is clear: hospitals are profiting from a system designed to inflate costs, and it’s time for change.

MedPAC estimates that implementing site-neutral payments could have saved $6.2 billion in 2021 alone and potentially cut Medicare outpatient costs by $157 billion over the next decade.

In 2023, Medicare paid hospitals more than double for services like echocardiograms compared to independent offices, despite providing the same care. The only reason for this is to line hospitals’ pockets.

It’s time for lawmakers to pass legislation that creates a fair system to patients, like site neutral payments. Better Solutions remains committed to this fight.