Healthcare prices and medical debt are growing problems. One thing that makes matters worse is that hospitals charge patients and insurers two to three times more than independent clinics for the exact same services, even when the care is delivered in nearly identical settings, by the same providers. Making matters worse, hospitals continue to consolidate local markets and reap the financial benefits of an outdated payment system.

This system distorts prices, reduces patient choice, and inflates insurance premiums, all while independent providers struggle to survive. Medicare and private insurers spend billions more than necessary every year, not because of better care, but simply because of where that care is delivered.

Site-neutral payment reform would ensure that the same service is paid the same amount, whether it is performed at a hospital-owned facility or an independent clinic. It is a common-sense fix that protects patients, lowers costs, and strengthens access to care.

New York, and the nation, need site-neutral payment reform to…

1. Stop price inflation and consolidation: Hospitals are purchasing independent clinics and reclassifying them as hospital outpatient departments — then billing Medicare and insurers at far higher rates. This practice is fueling rapid consolidation, crushing competition, and driving up costs.

2. Stop overcharging patients and undermining access: Patients are routinely charged more for the same services simply because their clinic is owned by a hospital. These inflated costs, often hidden behind facility fees, increase out-of-pocket expenses and make care less affordable. Meanwhile, independent clinics that offer lower prices are being pushed out of the market.

3. Save taxpayers money: Medicare overpays billions of dollars each year due to site-based pricing differences that have no clinical justification. Reforming this system would reduce government spending and ensure that tax dollars are spent more wisely. This would save medicare an estimated $150 billion.