Quote:
Originally Posted by dblwyr
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.
|
Medicare is guaranteed to the hospital, but it is contractually less than non-medicare payment. Hospitals and doctors lose money from medicare. They make up for it by charging higher prices and fees to the private sector. The more medicare and less private sector, the less the hospital and doctor will make.
This is a fact. It is a known fact, it's been a fact for years and years and years. Anyone who has ever worked in hospital finance, accounts receivable, accounts payable, billing, insurance claim, or anything similar in a medical setting, can tell you this.
Hospitals typically receive medicare payments from around 40% of its patient base, as you said. But while these payments are guaranteed, they are also LESS than the actual cost of the services they're supposed to be covering.