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As the Sequester Takes Effect, Providers Continue to Evaluate Spending Cuts

As the country waits for President Obama to sign the sequester order, health care providers continue to ponder the effects of the automatic 2 percent cut to Medicare payments. The reduction will be applied to payments received on or after April 1st, and, according to a recent Law360 article (which quoted Steve Weiner of Mintz Levin's Health Law Practice), experts predict potential layoffs, cuts in services, and the delay of new projects.  The decrease in reimbursement will add insult to injury given that the Affordable Care Act already cut hospital reimbursement and subjects hospitals to penalties for poor performance.  Additional details regarding how providers may suffer as a result of the sequester may be found in an article published by McClatchy.

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Karen S. Lovitch

Member / Chair, Health Law Practice

Karen S. Lovitch is a Mintz attorney who represents health care companies in regulatory, transactional, and operational matters. She advises them on health care regulations such as the Stark Law and the Clinical Laboratory Improvement Amendments of 1988.