dismiss

Clean Sweep Live Auction on Wed. May 1st. Click to view the full inventory

DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Pediatrics
SEARCH
Current Location:
>
> This Story

starstarstarempty starempty star (2)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment
advertisement

 

advertisement

 

Business Affairs Homepage

Air medical transportation: How a 15-minute ride may cost $30,000, and how we can change it Reducing sky-high transport expenses

Canon's Vital Images wins DoD contract Maximum $100 million fixed‐price contract for radiology and imaging systems

Are you GDPR compliant? It's not just a question for EU-based companies Here are the top eight considerations

Security tightening at hospitals for patient safety A noticeable change is occurring at the front entrance to hospitals

Johnson & Johnson completes Auris Health deal The $3.4 billion acquisition could include additional payments up to $2.35 billion

Follow-up imaging study points to benefits of automated notification Raising the bar on manual callbacks

Change Healthcare files for IPO Could raise as much as $100 million, listing on Nasdaq

Mergers do nothing for quality of care, lower patient satisfaction, says study Based on 29 data points and the assessment of 16 processes of care

GE Healthcare IPO on hold as new deal takes spotlight Selling biopharma business to Danaher for over $21 billion

Asheville Radiology Association joins Strategic Radiology The latest expansion by the imaging coalition brings 43 new physicians to the table

Study shines light on 50 most expensive hospitals in U.S.

by John W. Mitchell , Senior Correspondent
Some for-profit hospital systems have charges that can range up to three times higher than the national average. A study published this month in Health Affairs takes those facilities to task.

“In economics we call this a policy failure,” co-author Ge Bai, Ph.D., an assistant professor of accounting at Washington and Lee University told DOTmed News. She published the study with Gerard F. Anderson, a professor in the Department of Health Policy and Management at the John Hopkins Bloomberg School of Public Health.

Story Continues Below Advertisement

THE (LEADER) IN MEDICAL IMAGING TECHNOLOGY SINCE 1982. SALES-SERVICE-REPAIR

Special-Pricing Available on Medical Displays, Patient Monitors, Recorders, Printers, Media, Ultrasound Machines, and Cameras.This includes Top Brands such as SONY, BARCO, NDS, NEC, LG, EDAN, EIZO, ELO, FSN, PANASONIC, MITSUBISHI, OLYMPUS, & WIDE.



“It’s unjustified for these for-profit hospitals to charge 1,000 percent over Medicare allowable costs when other hospitals on average are charging 300-400 percent," said Bai, whose interest in the issue stems from her own hospital billing experiences.

She recalled an experience from five years ago, seeing three columns on her hospital bill: total charges; contractual adjustment; and amount owed. “I’m a CPA and Ph.D. and I thought it was confusing. It seemed to me it would be hard to understand for many other patients,” said Bai. “I was glad I had insurance so that I didn’t have to pay the full amount.”

This is one of the major points of the study, which compared charges over Medicare allowable costs: patients without insurance or who are out-of-network at high-priced hospitals are commonly asked to pay full charges, which is more out-of-pocket revenue if charges are three to four times higher.

The Federation of American Hospitals (FAH), an organization which represents for-profit hospitals, has posted a statement on its website. It states that actual payment-to-costs ratios should be the measure, which it said is near identical for their member hospitals compared to the national averages.

A spokesman for the FAH declined to answer specific questions, such as if member hospitals include the difference between Medicare and Medicaid payments and charges in calculating uncompensated care, which it puts at $450 million in 2012 for its member hospitals.

A key limitation of the study is the omission of discounts hospitals offer patients, according to the FAH — a fault the researchers themselves acknowledged. However Bai said such information is not available in the studied database and discounts on a charge that is already marked up three to four times is not going to be that helpful to self-pay patients.

“It stands to reason a discount on a 1,000 percent mark-up is not as generous as the same on a 300 percent mark-up,” she said. “To charge 1,000 percent and get 1,000 percent paid would clearly be a miracle. But to utilize the high charge to squeeze more revenue out of some patient groups is not too bad for business, right? The discount or uncompensated care does not explain why the gross charges are so high in the first place.”

Bai believes the solution is through public policy that would cap hospital charges to a certain percentage above the Medicare allowable costs.

The study of 2012 data found that of the 50 most expensive hospitals with the highest charge-to-cost ratios, 98 percent were for-profit and 40 percent operated in the state of Florida.

Business Affairs Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2019 DOTmed.com, Inc.
ALL RIGHTS RESERVED