MedPAC recommends cutting 2.8% surgery center reimbursement increase, requiring price reporting

The Medicare Payment Advisory Commission plans to recommend CMS eliminate a 2.8 percent pay increase for surgery centers in its report to Congress March 13, citing issues around surgery center finances, Bloomberg Law reports.

Surgery centers don't provide cost data to CMS. Without that data, MedPAC will argue it can't document growth over time, determine profit margins or evaluate the adequacy of Medicare payments.

Commission Chairman Francis Crosson said, "It's very difficult for this commission to make a recommendation for increased payments" without knowing what surgery centers pay for drugs, medical supplies, equipment, labor, building expenses and professional services.

MedPAC is also recommending CMS require surgery centers to submit cost data going forward.

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