Tradeoffs This Budget Cut Would Save Medicare Patients Money. But Can Rural Hospitals Afford It?
Mar 27, 2025
In this discussion, Melanie Evans, a producer at Tradeoffs focused on data analysis, joins Tim Rye, Chief Strategic Development Officer at Peterson Health in Texas. They dive into a proposed Medicare reform that could save billions but risks the survival of rural hospitals. Tim shares insights on the financial strain these facilities face and the vital need for policy solutions. The conversation highlights the delicate balance between cutting costs for Medicare patients and ensuring that rural healthcare providers can continue to operate effectively.
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Site-Neutral Payments
- Medicare pays hospital-owned clinics more than independent clinics for the same care.
- This can be double the cost or even higher, as seen with allergy tests and chemotherapy.
Rural Hospital Investment
- Peterson Health in Kerrville, Texas, invested in cardiac care to serve its aging population.
- This allowed for faster heart attack treatment, saving lives in critical situations.
Rural Hospital Vulnerability
- Rural hospitals often operate on thin margins, making them vulnerable to funding cuts.
- Site-neutral payments could force them to cut essential services, impacting community care.