Doctor reembursement

The “doc fix” is a temporary solution to curb Medicare spending on physician services under the Sustainable Growth Rate method employed by the Centers for Medicare & Medicaid Services.
Monday’s passing of the bill averts the 24% reduction in physician Medicare reimbursement that would have occurred on March 31, delaying the cuts for one more year.
Of note is the fact that Medicare reimbursement rates are not being reduced for other healthcare service providers to pay for this bill, Jefferies analysts write in their report. Rather, Congress is proposing to fund this bill by raising sequestration cuts to a 4% rate in the first half of 2024.
For hospital operators, SNFs and Healthcare REITs, Jefferies says the doc fix bill is a “positive,” as it should give investors more confidence in the near-term earnings of these facilities that will not be impacted by a major reimbursement cut.