Site Neutral Payments: An Overview.

A site neutral payment policy would entail CMS paying the same rate for the same healthcare service regardless of the location in which the service is provided. From the government's perspective, the reason behind this policy is potentially billions of dollars in savings. The rationale for using various payment systems is that there are different costs associated with providing healthcare services in different locations. Each payment system has a separate methodology for determining rates for services based on these costs. Hospitals may choose to prepare early for the inevitable through accurate cost reporting, shifting certain ancillary services to more appropriate outpatient, off site locations, and participating in the Medicare Shared Savings Program.