This month’s graphic highlights how a lack of site-neutral payments distorts prices in healthcare services.  This lack of site-neutral payments, codified in Medicare law and often replicated by private payers, means that the exact same services are paid differently if the outpatient facility is affiliated with a large hospital system.  This distorts market incentives, favoring hospital-owned facilities and contributing to consolidation in the healthcare sector, which can reduce competition and further raise prices.