The U.S. Supreme Court has issued a significant ruling in Advocate Christ Medical Center v. Kennedy, siding with the Department of Health and Human Services The Centers for Medicare and Medicaid Services (CMS) has proposed expanding “site-neutral” payment policies by Medicare, a move that has sparked significant pushback from hospitals nationwide. Under the plan, Medicare would reimburse for some outpatient services at the same rate regardless of where those services are delivered. This move would hurt hospitals financially because Medicare typically pays a higher rate for services delivered at hospitals.
Outpatient reimbursement often supports high-cost services at hospitals such as emergency departments, trauma care, and charity care. If payments are reduced, many health systems—especially in rural or underserved areas—may be forced to scale back services or close facilities.
If CMS moves forward with its proposed “site-neutral” payment policies, expect a legal challenge from hospitals.
At DBL Law, we continue to monitor these developments closely. For guidance on navigating this decision’s implications or assistance with DSH payment calculations, please reach out to:
David Dirr
Partner, DBL Law
Health Care Practice Group
Email: ddirr@dbllaw.com
