A Look At the Myths And Half Truths About Profit And Non Profit Hospital Perform

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A Look At the Myths And Half Truths About Profit And Non Profit Hospital Perform
H David Sherman
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Other ways to achieve higher revenues Is to locate hospitals In states where reimbursement rate regulation Is less Intensive. This Is largely the cause for the concentrations of FP hospitals In a few regions of the United States and total absence of FP's In other regions. Beyond the payor mix question Is the Issue of whether the for profit hospitals achieve their profit goals by actually charging higher rates than not for profits. Lewin, et. Al . , [25] found that for profit hospital charges we...re higher than non-profit hospitals charges by the following amounts: charges per inpatient day were 23% higher, charges per admission were 17% higher, payments by Medicare were 13% higher on a per patient basis and 8% higher on a per admission basis. Medicare reimbursements Include an additional return on equity (ROE) allowance for FP hospitals over the fees paid to NP hospitals. When this ROE allowance is netted out of the above Medicare payments, the for profit hospitals still appear to have higher cost per day, but similar cost per admission.

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