MedPAC Recommends a Reduction in Hospital Outpatient Department Medicare Payments

At its Jan. 12, 2012, meeting, as one of its advisory recommendations to Congress on Medicare payments, the Medicare Payment Advisory Commission (MedPAC) recommended that Congress direct the Department of Health and Human Services to reduce payment rates for evaluation and management (E&M) services provided in hospital outpatient departments so that total payment rates for these visits are the same whether the service is provided in an outpatient department or a physician’s office. E&M services generally include routine visits, consultations and preventive medicine visits.