Site Neutral Payment Reform has the Potential to Significantly Reduce Out-of-Pocket Patient Spend

This white paper highlights cost disparities in medical services based on where they are performed, with hospitals often receiving higher payments. This leads to varying out-of-pocket expenses for patients. The study suggests that equalizing payment rates for certain outpatient services across different settings could result in substantial savings for beneficiaries, particularly those with higher medical needs. For example, breast cancer patients could save up to $19,095 by receiving treatments in a freestanding office rather than an off-campus hospital outpatient department. While there have been some site-neutral policies implemented in recent years, there are additional opportunities to produce beneficiary costs savings.