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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."

Go deeper

Cuomo asks New York AG and chief judge to choose "independent" investigator into sexual harassment claims

New York Governor Andrew Cuomo at a press conference on Feb. 24. Photo: Seth Wenig/pool/AFP via Getty Images

A special counselor to New York Gov. Andrew Cuomo released a statement on Sunday asking the state's attorney general and chief judge to jointly pick an "independent and qualified lawyer in private practice without political affiliation" to investigate claims of sexual harassment against the governor.

The state of play: The statement is an about-face from Cuomo, who had previously selected a former judge close to a top aide to lead the investigation, the New York Times reported, a move that was widely criticized.

Republican Sen. Sasse slams Nebraska GOP for "weird worship" of Trump after state party rebuke

Sen. Ben Sasse, (R-Neb.) Photo: Andrew Harnik - Pool/Getty Images

The Nebraska Republican Party on Saturday formally "rebuked" Sen. Ben Sasse (R-Neb.) for his vote to impeach former President Trump earlier this year, though it stopped short of a formal censure, CNN reports.

Why it matters: Sasse is the latest among a slate of Republicans who have faced some sort of punishment from their state party apparatus after voting to impeach the former president. The senator responded statement Saturday, per the Omaha World-Herald, saying "most Nebraskans don't think politics should be about the weird worship of one dude."

Cuomo barraged by fellow Dems after second harassment accusation

New York Gov. Andrew Cuomo faced a barrage of criticism from fellow Democrats after The New York Times reported that the second former aide in four days had accused him of sexual harassment.

Why it matters: Cuomo had faced a revolt from legislators for his handling of nursing-home deaths from COVID. Now, the scandal is acutely personal, with obviously grave political risk.