Canton-Potsdam Hospital halts ASC plans following regulatory changes: 4 things to know

Canton-Potsdam (N.Y.) Hospital is "unlikely" to pursue its plans of building an ASC in a new medical facility following CMS' 2017 OPPS that includes site-neutral payments, according to North County Now.

Here are four things to know:

1. In the updated regulations, CMS put caps on reimbursement for hospital-owned ASCs that are not within 250 yards of a hospital.

2. A Canton-Potsdam Hospital spokesperson said the updated hospital outpatient department payment changes make it financially challenging for the hospital to pursue its ASC plans in the medical facility.

3. The hospital had planned to open four outpatient surgery rooms as the hospital's outpatient rooms are often filled to capacity.

4. The hospital does not plan at this time to resubmit a certificate-of-need application for the outpatient surgical services. The health department will perform inspections and reviews in the near future before the medical facility opens its second and third floors.  Canton-Potsdam Hospital is using the second floor for orthopedic and sports medicine services and the third floor for medical and surgical specialties.

"We are still assessing the full impact of the new regulations regarding reimbursement of hospital-owned outpatient departments. That's likely the only change in circumstances that would see us reconsider the plan. We're concentrating on the main campus in Potsdam for the time being," a hospital spokesperson said. "We're awaiting the 2017 regulations and hopeful that the changes may occur. Until those 2017 regulations come out we're not contemplating anything on the first floor. It remains shell space for now."

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