At the same time, MedPAC recommended increasing hospital inpatient and outpatient prospective payment systems by 3.25 percent in the absence of sequestration cuts. The sequestration that begun last April enacted automatic 2 percent Medicare payment cuts for the next 10 years.
However, MedPAC did suggest reducing or eliminating pay differences between hospital outpatient departments and physician offices for some procedures, as currently hospital outpatient departments are paid significantly more.
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