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American Hospital Association plans to sue CMS over final site-neutral payment rule

November 02, 2018 / Rose Meltzer

Another legal battle between the nation's largest hospital association and the Trump administration is imminent after the Centers for Medicare & Medicaid Services (CMS) finalized a rule to institute site-neutral payments for clinic visits. CMS finalized its 2019 Outpatient Prospective Payment System (OPPS) rule (PDF) on Friday morning, which will gradually institute site-neutral payments in the Medicare program over the next two years. In a press release, the agency said site-neutral payments for clinic visits will lower out-of-pocket costs for beneficiaries and save the program as much as $380 million in 2019. Hours after the rule was released, the American Hospital Association (AHA) signaled its intent to challenge the new policy in court, arguing the administration has overstepped its boundaries.