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House gives final approval to Deficit Reduction Act

Ambulatory Surgery Reimbursement Update, February 8, 2006

On February 1 the U.S. House of Representatives approved the Deficit Reduction Act of 2005, legislation that reduces the reimbursement for ambulatory surgery center (ASC) procedures that are paid more in the ASC than in a hospital outpatient department (HOPD), according to the McDermott Will & Emery Web site. President Bush is expected to sign the bill.

The cap, discussed in the December 27, 2005 edition of Ambulatory Surgery Regulatory Update, will take effect January 1, 2007.

ASCs currently receive higher reimbursement than HOPDs for 280 procedures. HOPD rates are expected to change in 2007, so some of the 280 procedures may not be affected.

Congress made the cuts as part of budget reconciliation legislation intended to cut $40 billion from the federal budget over five years.

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