On Monday, June 28, 2021, the U.S. Supreme Court declined to hear an appeal upholding the Department of Health and Human Services’ (HHS) site-neutral Medicare pay policy.  American Hospital Association, et al v. Alex M. Azar II in his capacity as Secretary of HHS.  No. 20-1113.

HHS had instituted a reduction of Medicare hospital off-site payments for patient visits.  A Federal District Court had struck down the policy in 2019.  However, a panel of the U. S. Court of Appeals for the District of Columbia Circuit reversed that decision in 2020.  The Appellate panel held that the cuts to off-site outpatient departments were legal because the reductions were volume control measures that did not have to be budget neutral.  No. 19-5352, July 17,2020. 

Thus, the pay rule is currently effective, pending reaction by HHS.