Premier Statement on OPPS Proposed Rule Last Updated: July 14, 2017
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By Blair Childs, Premier Senior Vice President of Public Affairs

Members of the Premier alliance are shocked by the agency’s proposal to reduce payment rates for off-campus provider based hospital departments by an additional 25 percentage points—from 50 to 25 percent of what they would have been paid under outpatient rates. At a time when the nation is moving toward value-based payments, this proposal makes no sense. In essence, it removes all incentives to provide care out in the communities rather than at the hospital, and ultimately will lead to higher overall Medicare spending.

We were similarly troubled by the severity of CMS’s proposal to cut outpatient payments to 340B hospitals from average sales price (ASP) plus 6 to ASP minus 22.5 percent. There is no doubt this policy will have devastating consequences for safety net hospitals and thus the vulnerable populations they serve.

Premier intends to vigorously oppose both these proposals in comments, and we hope that in final rules, these proposals are either dramatically changed or abandoned altogether.

-By Blair Childs, Premier Senior Vice President of Public Affairs