ASCA board member Michael Guarino testified on behalf of the Ambulatory Surgery Center Association at a hearing of the House Ways & Means Health Subcommittee on Friday, addressing consolidation within the healthcare industry.
Mr. Guarino's testimony focused on the impact of mergers and acquisitions on government spending, saying that consolidation can raise the cost of care and reduce provider options for patients.
Mr. Guarino pointed out that Medicare saves an estimated $3 billion each year when surgical procedures are performed in ambulatory surgery centers rather than hospital outpatient departments. Despite the fact that the two facilities offer the same services, CMS uses different measures to update the payment systems, meaning payments continue to diverge. When hospitals buy and acquire surgery centers to increase revenue, beneficiaries must pay higher co-pays.
Mr. Guarino proposed decreasing the reimbursement gap between ASCs and HOPDs through the Ambulatory Surgery Center Quality and Access Act of 2011, which would tie future ASC reimbursement rate updates to the same measure used to update HOPD rates.
"Applying the hospital market basket would arrest the widening delta between the ASC and HOPD rates and signal to the health care market that the ASCs can remain viable alternatives for patients," said Mr. Guarino.
He also recommended Congress provide vigorous oversight of accountable care organizations to ensure ACOs to not impede competition, lead to higher costs or inhibit patient choice of care setting.
Learn more about the ASC Association.
Related Articles on Surgery Center Legislation:
Washington State Surgery Center Physicians, Professionals Lobby in DC
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Mr. Guarino's testimony focused on the impact of mergers and acquisitions on government spending, saying that consolidation can raise the cost of care and reduce provider options for patients.
Mr. Guarino pointed out that Medicare saves an estimated $3 billion each year when surgical procedures are performed in ambulatory surgery centers rather than hospital outpatient departments. Despite the fact that the two facilities offer the same services, CMS uses different measures to update the payment systems, meaning payments continue to diverge. When hospitals buy and acquire surgery centers to increase revenue, beneficiaries must pay higher co-pays.
Mr. Guarino proposed decreasing the reimbursement gap between ASCs and HOPDs through the Ambulatory Surgery Center Quality and Access Act of 2011, which would tie future ASC reimbursement rate updates to the same measure used to update HOPD rates.
"Applying the hospital market basket would arrest the widening delta between the ASC and HOPD rates and signal to the health care market that the ASCs can remain viable alternatives for patients," said Mr. Guarino.
He also recommended Congress provide vigorous oversight of accountable care organizations to ensure ACOs to not impede competition, lead to higher costs or inhibit patient choice of care setting.
Learn more about the ASC Association.
Related Articles on Surgery Center Legislation:
Washington State Surgery Center Physicians, Professionals Lobby in DC
ASC Legislation Adds 5 New Cosponsors
Members of Congress Tour Idaho Surgery Center