Hospital industry groups are requesting a rehearing on a federal appeals court ruling that upheld the Trump administration’s controversial rule that cuts payments to off-campus hospital clinics.
The American Hospital Association (AHA) and Association of American Medical Colleges (AAMC) announced Friday they are seeking a rehearing on the ruling earlier this month from the U.S. Court of Appeals for the District of Columbia. The ruling upheld the Department of Health and Human Services’ (HHS) authority to install Medicare payment cuts to off-campus hospital clinics to bring them to the same payment level as physician offices.
“These illegal cuts directly undercut the clear intent of Congress to protect hospital outpatient deaprtments because of the many real and crucial differences between them and other sites of care,” the AHA and AAMC said in a statement.
The groups argue that hospital off-campus clinics are held to a higher regulatory standard and are “often the only point of access for patients with the most severe chronic conditions, all of whom receive treatment regardless of ability to pay.”
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But the appellate panel found the hospital groups’ legal arguments lacking. The panel found that HHS had the authority to install the cuts because they were aimed at lowering a volume of unnecessary services.
The payment cuts were included in the Centers for Medicare & Medicaid Services’ 2019 hospital payment rule, which phased in the cuts over a two-year period.
Hospital groups sued to stop the cuts and a lower court struck them down. The appellate court overturned the lower court’s decision.
It remains unclear if AHA and AAMC will appeal to the Supreme Court if their request to get a rehearing is denied.