Nov 2, 2018

Medicare gives hospital clinics a pay cut

A doctor treats a patient during a clinic visit. Photo: Kirk McKoy/Los Angeles Times via Getty Images

Medicare will pay the same amount for routine doctor visits regardless of whether they happen in hospital outpatient departments or physicians' offices. It formally signed off on the controversial policy in a new regulation today.

Yes, but: The policy will be phased in over 2 years, which may give hospitals and doctors time to quash it or get it scaled back. And although this so-called "site-neutral" policy represents a major shift in how hospitals get paid, the relatively narrow rule will affects less than 1% of all Medicare outpatient spending.

Between the lines: The federal government has studied this issue for years, even before the Obama administration. Officials decided they were fed up with paying more for routine checkups in hospital-owned clinics, when the same services can be done cheaper elsewhere.

  • "In 2012, Medicare was paying approximately 80% more for a 15-minute office visit in a hospital outpatient department than in a freestanding physician office," the Centers for Medicare & Medicaid Services wrote in its final rule.
  • CMS also based its decision on a 2015 Government Accountability Office report, which called for this payment reform after finding hospitals were buying doctors' practices and increasing routine office visits due to the higher payment rates.

The American Hospital Association and other hospital lobbying groups have already said they intend "to promptly bring a court challenge to the new rule's site-neutral provisions."

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  1. Global: Total confirmed cases as of 7:30 p.m. ET: 660,706 — Total deaths: 30,652 — Total recoveries: 139,304.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 7:30 p.m. ET: 121,478 — Total deaths: 2,026 — Total recoveries: 1,072.
  3. Federal government latest: President Trump is considering a quarantine on New York, parts of New Jersey and Connecticut.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters that supported Trump's handling of the virus less than two weeks ago are now balking at his call for the U.S. to be "opened up" by Easter.
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Coronavirus updates: Deaths surge in Italy and Spain

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has since Friday killed 889 more people in Italy and 832 others in Spain, which announced all non-essential workplaces would close for two weeks.

The big picture: The number of deaths from COVID-19 surpassed 2,000 on Saturday in the U.S., which leads the world in confirmed coronavirus infections — more than 121,000, per John Hopkins. The number of those recovered from the virus in the United States passed the 1,000-mark on Saturday evening.

Go deeperArrowUpdated 30 mins ago - Health

U.S. coronavirus deaths top 2,000

Nurses in masks, goggles, gloves, and protective gowns at Penn State Health St. Joseph conduct drive-thru coronavirus testing in Bern Township, Pennsylvania on March 27. Photo: Ben Hasty/MediaNews Group/Reading Eagle via Getty Images

More than 2,000 people have died from the novel coronavirus in the U.S. as of Saturday, per data from the Center for Systems Science and Engineering at Johns Hopkins University.

Why it matters: Recorded deaths in the U.S. surpassed 1,000 two days ago. The U.S. has the most COVID-19 cases in the world, exceeding China and Italy.

Go deeper: Trump weighs quarantine of New York, New Jersey, Connecticut