March 22, 2021
Last week, SNMMI and its partners strongly urged Congress to pass H.R. 1868 to extend Medicare sequester moratorium through the end of 2021.
On December 27, 2020, The Consolidated Appropriations Act of 2021 was enacted, giving providers a three-month extension (until March 31, 2021) of the Medicare sequester moratorium originally included in the CARES Act. In their letter, SNMMI and the undersigned organizations noted and commended these previous actions taken to assist physicians, clinicians, technologists, and hospitals during the COVID-19 pandemic.
Health care providers continue to face significant financial hardships, with 97 percent of physician practices experiencing a negative financial impact directly or indirectly related to COVID-19. Additionally, practices are reporting a 55 percent decrease in revenue and a 60 percent decrease in patient volume since the beginning of the pandemic.1 New analyses predict another potential $53-122 billion in lost hospital revenue in 2021.2 The revenue that has been lost affects not only the facility or practice but also the non-physician personnel who work to provide patient care during this ongoing pandemic.
As urgent action is needed to avoid any additional, preventable strains on our healthcare system and those individuals who continue to perform treatments and examinations in this challenging environment, we hope the 117th Congress will act quickly to extend the Medicare sequester moratorium through the end of the year.
1. Medical Group Management Association, COVID-19 Financial Impact on Medical Practices, April 13, 2020, https://www.mgma.com/resources/government-programs/covid-19-financial-impact-on-medical-practices.
2. COVID-19 in 2021: The Potential Effect on Hospital Revenues, February 2021, https://www.aha.org/system/files/media/file/2021/02/KH-2021-COVID-Impact-Report_FINAL.pdf