Beginning Jan. 1, 2017, provider-based, off-campus hospital outpatient departments will be subject to site-neutral payments, according to a JD Supra report.
Here are four takeaways.
1. The site-neutral payment regulation, a provision of the Balanced Budget Act of 2015, will apply to provider-based, off-campus HOPDs established after Nov. 1, 2015.
2. After the site-neutral payment effective date, these HOPDs will be reimbursed under the Ambulatory Surgical Center Fee Schedule or Medicare Physician Fee Schedule, according to the report.
3. HOPDs established before Nov. 2, 2015 are considered grandfathered and will continue to receive reimbursement under the Medicare Hospital Outpatient Prospective Payment System.
4. This change in HOPD reimbursement could affect hospitals' decision to pursue physician practice acquisitions, as physician services may not generate a higher income stream, according to the report.