Jul 17, 2020 - Health

Judge rules hospital outpatient payment cuts are valid

A man sits on an exam chair in a doctor's office while a nurse checks him out, and a kid sits in a waiting room.

Photo: John Moore/Getty Images

A panel of federal judges upheld the Trump administration's cuts to Medicare payments for routine medical visits in a hospital outpatient office — a blow to the hospital industry, which will lose hundreds of millions of dollars annually.

The big picture: Hospitals last year successfully quashed a similar rule, which would have equalized Medicare's pay rates for basic doctor visits, regardless of whether they took place in a hospital-owned or independent clinic. The American Hospital Association said in a statement it is "carefully reviewing the decision to determine our next steps."

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