Hospitals Hit By 340B and Site-Neutral Medicare Cuts in New Rule

Senior Policy Advisor Miranda Franco commented on the 340B ruling that will affect Medicare and Medicaid services. The rule includes a two-year phase-in of a payment cut for hospital outpatient clinic services and off-campus provider-based departments (PBDs) that were originally restricted from cuts in the Bipartisan Budget Act of 2015. The ruling will most likely affect individuals in rural or low-income communities who rely on outpatient clinics for their healthcare needs. The American Hospital Association (AHA) and other health advocates plan to file a lawsuit to challenge this rule.

“At this point, [a lawsuit] is trying to stop the hemorrhage because [the new rule] indicates that this is not going to be the last foray into equalizing payments,” said Ms. Franco.

READ: Hospitals Hit By 340B and Site-Neutral Medicare Cuts in New Rule