AMA on administration's effort to save independent medical practices

The American Medical Association (AMA) today responded to the Administration's initial plan to remove hospital payment incentives that have promoted consolidation in the health care industry. The new proposal from the Centers for Medicare & Medicaid Services (CMS), which is part of the 2017 proposed hospital outpatient payment rule, aims to better align payment policies for physicians in independent practice with those owned by hospitals. The CMS proposal could help stem the tide of consolidation by large systems and help small practices maintain their independence.

CMS proposes to reduce the incentives for hospitals to purchase physician practices by paying the same Medicare rates after future hospital acquisitions, whether physician services are provided in freestanding independent practices or in off-campus, hospital-owned practices. Exceptions are provided for emergency department services.