WASHINGTON, DC - JUNE 4: Ranking Member Sen. Bill Cassidy (R-LA) speaks during a Senate Committee on Health hearing on "The Assault on Women's Freedoms: How Abortion Bans Have Created a Health Care Nightmare Across America" on Capitol Hill on June 4, 2024 in Washington, DC. The Committee is holding the hearing to examine the wave of abortion restrictions enacted in states around the country following the Supreme Courts decision to overturn Roe v. Wade. (Photo by Samuel Corum/Getty Images)
Sen. Bill Cassidy (R-La.) is in line to lead the Senate’s health committee if Republicans take control of the chamber next year.Samuel Corum/Getty Images

WASHINGTON — The hospital industry has pushed back against Medicare payment reforms for years, arguing that the policies would financially hurt rural hospitals. 

Two key senators on Friday released a plan to get around that issue by reinvesting some of the money saved from payment reforms to help rural and safety-net hospitals. Hospitals that keep providing services like trauma centers, labor and delivery units, and burn units would get financial bonuses, too. 

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The reforms, called “site-neutral” payments, would equalize Medicare payments for some services provided at hospital outpatient departments with what the program pays physician offices for the same services. The hospital industry at large has opposed the policy because it argues hospitals should get paid more because they have to provide round-the-clock care and have higher overhead costs. 

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