Medicare Inpatient Profitability in US Hospitals

Posted on March 14, 2013 by Dr. David Edward Marcinko MBA MEd CMP™

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The Impending Need for Cost-Efficiency

[By Objective Health]

Medicare patients often account for the largest proportion of inpatient volume for an average US hospital. With the exception of outlier cases, Medicare inpatient services are adjusted for wage rates and reimbursed as a single predetermined payment across the country.

Over the next few years, Medicare is expected to substantially reduce growth in payment rates, thereby pressuring hospitals to become more cost-efficient.

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Medicare OH

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Assessment

This infographic highlights the need for hospitals to manage costs, showing that there is a wide variation in Medicare inpatient profit across US hospitals, which is primarily driven by differences in Medicare cost per case.

Conclusion

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Filed under: Health Economics, Health Insurance | Tagged: , , , | 3 Comments »