AHA urges Congress to eliminate Medicaid DSH cuts, reject site-neutral payments as part of government funding package

The AHA Jan. 10 urged House and Senate leaders to eliminate Medicaid disproportionate share hospital reductions for two years and reject policies to expand site-neutral payment cuts or add regulatory burdens on hospitals and health systems as part of any government funding package.

Current Medicare payment rates appropriately recognize that there are fundamental differences between patient care delivered in hospital outpatient departments compared to other settings. Efforts to expand site-neutral payment cuts to include essential drug administration services furnished in off-campus HOPDs would disregard these important differences, the letter states.

“It is unconscionable to impose these cuts at a time when so many hospitals are already facing serious financial challenges,” AHA said.