The House Education and Workforce Subcommittee on Health held a hearing on healthcare competition and transparency. The American Hospital Association (AHA) stated that hospital mergers and acquisitions help lower costs and improve patient access and quality of care. The AHA opposed additional site-neutral payment policies and clarified that hospitals follow federal regulations for billing, including accurate location information. Medicare regulations require notifying beneficiaries of their financial obligations when treated in off-campus hospital outpatient departments. The AHA emphasized that these practices are not dishonest billing but compliance with federal regulations.
Today, the House Education and Workforce Subcommittee on Health, Employment, Labor, and Pensions convened a hearing to discuss the crucial topics of competition and transparency in the field of health care. In response to this hearing, the American Hospital Association (AHA) submitted a statement emphasizing the significance of mergers and acquisitions as tools employed by certain hospitals to reduce costs and enhance the quality and accessibility of health care for patients. The AHA further highlighted that Medicare’s inadequate coverage of beneficiary care costs can be partly attributed to payment cuts for site-neutral services.
The AHA vehemently opposes any additional site-neutral payment policies and greatly appreciates the opportunity to dispel the misleading notion that hospitals engage in deceptive billing practices to maximize reimbursement rates. It is important to clarify that hospitals are bound by law to accurately present the location of care delivery in their billing. By federal regulations, hospitals and other medical service providers are required to bill all payers—Medicare, Medicaid, and private insurers—using codes that explicitly indicate the service location. Furthermore, existing Medicare regulations mandate that beneficiaries receiving treatment in off-campus hospital outpatient departments (HOPDs) receive notifications regarding their anticipated financial obligations. They are also informed that they will receive separate bills from both the treating physician and the hospital. These practices align with current federal regulations and should not be misconstrued as dishonest billing.
