Site-Neutral Payment Proposals

WASHINGTON (September 3, 2025) – A new study released today by the American Hospital Association (AHA) shows that Medicare patients who receive care in a hospital outpatient department (HOPD) are more likely to come from geographically isolated and medically underserved communities and be sicker…
It is important to engage with your lawmakers while they are home and discuss the impact that the recently passed One Big Beautiful Bill Act and additional policy proposals that are under consideration will have on hospitals’ ability to provide care.
The AHA is disappointed that CMS proposes an inadequate Medicare outpatient hospital payment update, as many hospitals — especially those in rural and underserved communities — operate under challenging financial pressures.
The Centers for Medicare & Medicaid Services (CMS) July 15 issued a proposed rule that would increase Medicare hospital outpatient prospective payment system (OPPS) rates by a net 2.4% in calendar year (CY) 2026 compared to CY 2025.
Congress is considering several proposals that would impose additional Medicare site-neutral payment reductions for services provided in hospital outpatient departments (HOPDs).
Legislative efforts to enact a Medicare Payment Advisory Commission (MedPAC) proposal that would impose site-neutral payment cuts on hospitals for certain outpatient services — including those occurring in both on-campus and off-campus hospital outpatient departments (HOPDs) — would lead to…