MedPAC votes to cut payments for freestanding ERs

Modern Healthcare: The Medicare Payment Advisory Commission voted unanimously to cut reimbursement for some standalone emergency departments in urban areas. The proposal could save Medicare up to $250 million annually if adopted by Congress.

Hospital industry stakeholders immediately slammed the idea, arguing the cuts could undermine access to care.

In its vote Thursday, MedPAC asked federal lawmakers to reduce emergency department payment rates by 30% for off-campus standalone facilities that are within six miles of an on-campus hospital emergency department. The suggestion will be published in the advisory group's June report to Congress.

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