Proposed Medicare rates to benefit hospital operators - Jefferies

Surgery Partners

14/07/2023 14:41

** The U.S. Centers for Medicare & Medicaid Services (CMS)
on Thursday proposed reimbursement rates for outpatient services
for Medicare, which Jefferies says would benefit hospital
operators 
    ** Brokerage says hospital operators like HCA Healthcare Inc
 HCA.N , Tenet Healthcare Corp  THC.N  and Surgery Partners
 SGRY.O  would gain from a 2.8% proposed hike in payments for
outpatient and ambulatory services for fiscal 2024
    ** CMS also proposed to cut reimbursement rates for
physician services by 3%, which Jefferies says is notably
smaller than ~4.5% cut in FY2023
    ** Congress expected to step in to moderate or eliminate
this proposed cut later in the year - brokerage
    ** The final rule will be issued in early November and take
effect from January 1, 2024, says CMS 
    ** Adds the proposed rates will affect about 3,500 hospitals
and 6,000 Ambulatory Surgical Centers which provide outpatient
surgical services to patients 

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))