Talk of The Villages Florida - View Single Post - Meaning of royalty fees pd to the villages
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Old 11-18-2014, 09:25 AM
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Originally Posted by NYGUY View Post
It should be noted that these numbers are only accurate if you assume the rates billed by the hospitals represent the actual cost of care. I don't think you will find anyone who believes that, including the hospitals.
Hospital "charges" have not reflected the cost of doing business since TEFRA changed Medicare in the mid-80s. Accounting methodologies were changed more than a decade ago to reflect the fact that patient revenue noted on the books of hospitals was a specious number. Net patient revenue correctly reflects actual reimbursement after contractual allowances (insurance discounts, Medicare and Medicaid discounts, etc) have been deducted. Some of you might be interested in looking up a hospital cost report or tax return (form 990) just for the fun of it.
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