Two key senators have proposed a plan to address concerns from the hospital industry about Medicare payment reforms that would negatively impact rural hospitals. The plan involves reinvesting money saved from payment reforms to support rural and safety-net hospitals, and providing financial bonuses to hospitals that offer critical services. The reforms, known as “site-neutral” payments, aim to equalize Medicare payments for services provided at hospital outpatient departments with those provided by physician offices. The hospital industry has opposed the policy, arguing that hospitals should receive higher payments due to their round-the-clock care and higher overhead costs.
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