PBGH Supports Site Neutral Legislative Framework Issued by Senators Cassidy and Hassan to Improve Competition and Reduce Health Care Costs

Oakland, CA – Purchaser Business Group on Health (PBGH), a nonprofit coalition representing 40 private employers and public entities across the U.S., supports the legislative framework issued  by Senators Bill Cassidy (R-LA) and Maggie Hassan (D-NH) that addresses site-neutral payment reforms for Medicare. Site neutral reforms can prevent hospitals from taking advantage of current regulations to bill higher amounts at hospital or hospital-affiliated locations for medical services that can be performed safely in alternative care settings.

Equalizing payment for medical services across health care settings is important for two reasons: (1) Lowering the prices that consumers and purchasers pay for health care, and (2) Reducing the incentives for hospital systems to further consolidate by acquiring independent provider practices.

“PBGH supports site neutral reform because of its pro-competitive and cost-reducing effects on the health care marketplace,” said Elizabeth Mitchell, President and CEO of PBGH. “We are hopeful this legislative effort by Sens. Cassidy and Hassan will serve as a foundation for future site neutral payment legislation that addresses not just Medicare, but the commercial market as well.”

Evidence demonstrates that payment differences between hospital settings do not correspond to differences in quality of care. Accordingly, site neutral legislation – which is overwhelmingly bipartisan – is a clear way to reign in excessive hospital prices without compromising the quality of care that American patients receive.

Employers are supportive of policies that lower health care prices, promote fair competition, and address industry consolidation. Site neutral reforms would make significant progress on these goals. PBGH encourages Congress to advance current site neutral policy proposals contained in the Lower Costs More Transparency Act (H.R. 5378) and pursue additional reforms that extend to the commercial market. 

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About Purchaser Business Group on Health

PBGH is a nonprofit coalition representing 40 private employers and public entities across the U.S. that collectively spend $350 billion annually purchasing health care services for more than 21 million Americans and their families. In partnership with its members, PBGH initiatives are designed to test innovative operational programs and scale successful approaches that lower health care costs and increase quality across the U.S.