How facility fee neutralization could affect hospital acquisition patterns

Practice Management

Medicare reduced facility fee payments for hospital-owned outpatient department procedures, further closing the gap between HOPD and ASC payments. The change could have an impact on hospital strategy to acquire ASCs, according to a Medical Economics report.

 

Previously, hospitals acquired ASCs and in some cases could achieve higher reimbursement levels for the same procedures. However, with the reimbursement rates moving closer to independent ASCs, there may not be as much of an incentive for hospitals to acquire ASCs and physician practices, according to the report.

 

Hospitals will still likely acquire primary care practices as a major referral source as well as specialists to the hospital's inpatient services. Independent practice consultants report hospitals are becoming more conservative in their offers for practice acquisitions; physicians may have higher expectations for hours worked and relative value unit targets than hospitals are willing to give to acquire practices today.

 

The practices most attractive to hospitals today are busy groups with upgraded technology that can meet meaningful use and report quality data. Practices with board-certified physicians and well-trained staff have the advantage in negotiations.

 

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