Same Rate for Same Service

The "Same Rate for Same Service"concept argues that services should be paid equally, regardless of where they are provided. This principle aims to challenge the current disparity where hospitals typically receive higher payments for services than independent physician practices. 

Medicare reimbusement reform: Cassidy/Hassan framework

Senators Bill Cassidy and Maggie Hassan propose a reform to align Medicare reimbursement rates, by introducing unified lower rate for services typically performed outside of hospitals. This approach aims to treat physician offices and ambulatory care centers equally, promoting efficiency and reducing healthcare costs by eliminating payment difference based on location.

American Hospital Association (AHA) justification for higher rates

While the AHA argues that higher rates for hospital services are justified by the increased operational costs, including the provision of 24/7 emergency services. However, the inefficiencies associated with hospital-based care are facing growing scrutiny. As the debate over neutrality unfolds, both sides will need to make their cases. In fairness, this statement reflects the AHA’s position on the issue.