In an op-ed for the Topeka Capital-Journal, Chad Austin, president and CEO of the Kansas Hospital Association, explains why so-called “site-neutral” payment policies are anything but neutral—and how they could jeopardize access to care for patients across Kansas.
Austin warns:
Site-neutral payment policies aim to reimburse hospitals and other care settings at the same rate for similar services, regardless of where care is delivered. While that may sound fair in theory, it fails to account for the higher costs hospitals face to maintain 24/7 readiness, comply with federal regulations, and serve all patients who walk through their doors. By ignoring these realities, site-neutral proposals risk undermining the very infrastructure that communities rely on for care.
These policies could have especially serious consequences for rural and underserved communities. Hospitals in these areas often operate on thin margins while serving as critical access points for emergency care, specialty services, and routine treatment. Reducing reimbursement through site-neutral policies would force difficult decisions—cutting services, reducing staff, or, in some cases, closing altogether.
Austin continues:
Hospitals are required to be prepared at all times—to treat emergencies, maintain standby capacity, and care for patients regardless of their ability to pay. These responsibilities come with real costs that are not reflected in physician office or outpatient clinic settings. Equalizing payments without recognizing these differences ignores the value hospitals provide and threatens patients’ ability to access timely, comprehensive care close to home.
Rather than advancing policies that could weaken local healthcare systems, policymakers should focus on solutions that preserve access and strengthen care delivery. “Site-neutral policies may sound simple, but their impact would be anything but,” Austin concludes. “If implemented, they would reduce access to care, particularly in the communities that can least afford it.”
To read the full op-ed in the Topeka Capital-Journal, CLICK HERE.
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