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Physicians in the Houston area gathered virtually on September 7 to urge Congress to implement site-neutral payment policies. The objective of these policies is to ensure that patients continue to pay the same prices for healthcare services, regardless of whether they are received at a small physician practice or a large hospital. The call for action comes as hospitals increasingly acquire independent physician offices, leading to higher fees for services and additional facility charges for privately insured patients.
The Committee to Protect Health Care highlighted the impact of hospital acquisitions on healthcare costs. On average, when a hospital system acquires a physician's office, prices surge by 14.1 percent, resulting in billions of dollars in additional expenses for patients. These rising costs also contribute to higher premiums for everyone, exacerbating the financial burden on individuals and families.
Dr. Owais Durrani, an emergency medicine physician in Houston, provided examples of the price disparities that arise when services transition from independent offices to "hospital outpatient departments." For instance, a Level 3 ultrasound diagnostic and screening that costs around $250 in a standalone physician's office would increase to $650 in a hospital outpatient department, even if performed by the same qualified medical professional. Similarly, routine endoscopies would jump from an average cost of $527 in an office to $2,679 in an outpatient department.
Dr. Audrey Nath, a pediatric neurologist in Houston, and Dr. Rob Davidson, Executive Director of the Committee to Protect Health Care, were among the attendees at the virtual meeting. They joined their colleagues in advocating for site-neutral payment policies to address the inequities that arise from hospital acquisitions of physician practices. By enacting these policies, Congress can ensure fair and consistent pricing for healthcare services, benefiting patients in the Houston area and beyond.