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Judge quashes rule that cut hospital clinic payments

A doctor examines a patient in a medical clinic room.
A doctor examines a patient in clinic. Photo: Jeff Gritchen/Digital First Media/Orange County Register via Getty Images

A federal judge on Tuesday threw out a regulation that slashed Medicare payments for routine checkups in doctors' clinics that are owned by hospitals. Modern Healthcare first reported the decision.

Why it matters: This is a major victory for hospitals, which sued the Trump administration over the rule. The cuts affected less than 1% of all Medicare outpatient spending, but proponents argued the "site-neutral" policy is needed to help prevent providers from treating patients in higher-cost settings.