With the bill's signage, the 3.37% cut to Physician Fee Schedule reimbursements was lowered to 1.69%.
President Biden signed the bipartisan spending bill for $460 million on Sunday evening.
Most notably, with the bill’s passage, the 3.37% cut to Physician Fee Schedule reimbursements was lowered to 1.69%.
Healthcare groups like the American Medical Association have been vocal in their opposition of the cuts, believing they’ll negatively affect hospitals financially.
Catherine “Mindy” Chua, DO, chief medical officer of Davis Health System, recently spoke to HealthLeaders about the potential effects of the pay cuts. Chua explained that three-quarters of physicians are employeed by hospital systems, so while the pay cut won’t affect them directly, it affect the systems and physician practices owned by systems.
“The physician fees are going to the hospitals to maintain the physicians they employ. We are not going to be decreasing what physicians are paid because Medicare is cutting our reimbursement,” she said. “You are not going to keep physicians if you do that.”
Additionally, the bill eliminated the Medicaid DSH payment cuts proposed for fiscal year 2024 and delayed fiscal year 2025 reductions until January 1, 2025.
In a statement, Bruce Siegel, president and CEO of America’s Essential Hospitals, said that with the elimination of the FY2024 pay cut and delay of the FY2025 cut, policymakers have more time to look into a solution for the “decade-long threat to DSH support.”
Steven P. Furr, president of the American Academy of Family Physicians, shared similar thoughts in his statement.
“Short-term extensions jeopardize access to care for millions of patients,” Furr said. “Without the stability of a multi-year reauthorization, family medicine residents face significant uncertainty about what their future looks like.”
“This approach to funding discourages residents from choosing to practice in areas where health care access is already at risk.”
Jasmyne Ray is the revenue cycle editor at HealthLeaders.