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Fiscal Cliff Compromise Impacts Healthcare Providers’ Bottom Line

Fiscal Cliff Impacts Healthcare ProvidersLast week, the President and Congress reached a last-minute compromise regarding the much-discussed “fiscal cliff.” The compromise was signed into law by the President and has several provisions that affect the healthcare industry.

1. A reduction in Medicare payment rates to physicians was postponed for an additional year; however, the avoidance of a rate cut is offset by cuts to other providers such as dialysis centers and hospitals.

2. Adjustments will be made resulting in a reduction in Medicare payments to hospitals over the next 10 years.

3. For therapy providers, payments for multiple therapy services provided on the same day will be reduced by 50% instead of 25% beginning in April.

Check back in with the Jeyaram & Associates blog to learn more about the effects of the new law.