Medicare is an important payer to hospitals. Note these statistics—that While dated, are relevant as these number are usually lagging. “The majority of patients treated by hospitals are covered by Medicare (40.9 percent of patients treated in U.S. hospitals). The average payer mix of a U.S. hospital is as follows: Medicare: 40.9 percent. Medicaid: 17.2 percent. (Becker;s, 2013). Medicare revenue is key to hospital revenues. Payment formulas and contractual agreements are complex, and thus what might look like hospital costs are not necessarily related to revenue. My point is, Medicare patient population does not mean less revenue and poor care.
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