Hospitals Challenge Medicare Rule on Office Payments

Dec. 5, 2018, 8:47 PM

Two hospital trade groups and three hospitals are challenging a Medicare payment method that will slash the revenue they get from clinics they own.

In a complaint filed Dec. 4 , the American Hospital Association, the Association of American Medical Colleges, and the hospitals said a rule reducing Medicare payments for clinics owned but not attached to hospitals violates Medicare law. They filed suit in the U.S. District Court for the District of Columbia.

The Centers for Medicare & Medicaid Services estimated the payment changes would reduce payments to hospitals by $760 million in 2019. CMS Administrator Seema Verma told...

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