Site-Neutral Payments

Site-based payment differentials for health care services have been identified as one factor that drives up health care costs for patients and increases commercial and public health care spending. Additionally, these differentials have contributed to a rise in consolidation between hospitals and physicians’ practices, which has exacerbated issues related to health care costs and spending. Efforts to adopt site-neutral payment measures aimed at equalizing reimbursement rates for the same health services regardless of where those services are received, however, continue to face litigation challenges, especially from hospital organizations and providers.