University of Kansas Hospital Authority et al. v. Azar

Why this Matters:

The plaintiffs argue that a Medicare payment regulation lowering the payment rates for outpatient care provided at off-site hospital departments to match the rate for similar services at independent physician offices violates the Administrative Procedure Act. Restrictions on the ability for the Medicare program to incorporate site neutral payment adjustments for outpatient services would remove an important tool in ensuring that Medicare beneficiaries could be safely and efficiently treated in a lower-cost setting.

Potential Impact:

Medicare’s ability to make certain site neutral payment adjustments can help promote federal savings and lower health care costs for patients.