Fed. panel pushes for Medicare payment changes to hospitals

A federal advisory panel urged Congress last week to move immediately to cut payments to hospitals for many services that can be provided at much lower cost in doctors’ offices (Source: “Medicare Panel Urges Cuts to Hospital Payments for Services Doctors Offer for Less,” New York Times, June 15, 2013).

In its annual report to Congress, The independent Medicare Payment Advisory Commission said current payment disparities had created incentives for hospitals to buy physician practices, driving up costs for the Medicare program and for beneficiaries. Hospital buyouts of doctors, turning independent practitioners into hospital employees, have also led to higher spending by private insurers and higher co-payments for their policyholders, the commission said.

“In many cases, a physician’s practice that is purchased by a hospital stays in the same location and treats the same patients,” but “Medicare and beneficiaries pay more for the same services,” the 17-member commission said in its report.