FAH Hospital Policy Blog

Perspectives on health policy affecting America's hospitals and the patients we serve.

Site-Neutral Payments | FAH Policy Blog Team

FAH Letter to Lawmakers: House Bill “Threatens Patient Access to Hospital Care”

FAH President and CEO Chip Kahn sent a letter to Members of Congress urging them to vote against the current version of the Lower Costs, More Transparency Act (H.R. 5378) because it includes a so-called “site-neutral” provision that threatens seniors’ access to care by cutting Medicare payments for hospitals services.

FAH recognizes the importance of Congressional efforts to lower health care costs and supports the inclusion of a delay in implementation of Medicaid Disproportionate Share Hospital (DSH) cuts. However, the letter points out that isn’t enough to outweigh the negative impact of Medicare payment cuts in the legislation.

“The so called-site neutral payment cuts do not take into account the fact that hospitals are already only paid 80 cents on the dollar by Medicare and hospitals require more funding than other sites of care because we treat sicker, lower-income patients with more complex and chronic conditions, provide 24/7 access to care in the community, and are held to a higher regulatory and safety standard. Additionally, these cuts disproportionately impact patients in rural and underserved communities where hospitals are already at risk of closing or reducing service lines such as emergency rooms and maternity care,” wrote Kahn.

Read the complete letter HERE.