Last week, the U.S. Court of Appeals upheld HHS’ payment cuts to hospital off-site outpatient departments for clinic visits, reversing last year’s decision by a lower court. The appeals court ruled that the cuts do not have to be budget neutral because they were made to control unnecessary increases in the volume of covered outpatient services. This ruling comes as another loss to hospitals who are already dealing with the COVID-19 pandemic. The American Hospital Association is still reviewing the decision and deciding on next steps.

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