The impact of price variation because of the site of care—receiving treatment in a physician office vs a hospital outpatient department (HOPD)—is an important driver of health care spending.1 While patients may receive the same treatment in either setting, insurers typically reimburse payments to HOPDs at a higher rate than to physician offices. Hospitals justify this payment difference because they incur higher overhead costs and treat more medically complex patient populations.1,2
Winn AN, Keating NL, Trogdon JG, Basch EM, Dusetzina SB. Spending by Commercial Insurers on Chemotherapy Based on Site of Care, 2004-2014. JAMA Oncol. Published online February 22, 2018. doi:10.1001/jamaoncol.2017.5544
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