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American Hospital Association report shows Medicare, Medicaid underpaid hospitals in 2017
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The American Hospital Association released its 2019 Hospital Statistics report, which showed inpatient and outpatient hospitals were underpaid by Medicare and Medicaid in 2017.
According to a press release from the American Hospital Association (AHA), underpayment occurs when the payment received is less than the cost of providing care, including personnel, technology and other goods and services required to provide hospital care. The AHA also noted in the release that hospitals provided $38.4 billion in uncompensated care.
“In 2017, combined underpayments from Medicare and Medicaid were $76.8 billion, and hospitals received payment of only 87 cents for every dollar hospitals spent caring for Medicare and Medicaid patients,” Aaron Wesolowski, AHA vice president for policy research, analytics and strategy, told Healio.com/Orthopedics. “Hospitals also continued to provide a high level of uncompensated care – $38.4 billion in 2017.”
Wesolowski said the report also showed that hospitals continued to test and adopt alternative payment and delivery models in 2017, and that half of all responding hospitals were participating in some form of shared savings/loss programs. He added there was continued increase in the adoption of accountable care organizations, with 42% of hospitals reporting having an established ACO. The report showed the number of hospitals participating in an ACO more than doubled since 2013, according to Wesolowski.
“Hospitals are also continuing to develop approaches to addressing the social, economic and environmental factors that impact health outcomes and costs,” Wesolowski said. “Examples include: 84% of responding hospitals conduct community health education in their communities; 79% offer some form of nutrition program; and 54% offer tobacco treatment and cessation programs.”
A comprehensive guide that identifies trends in hospitals, facilities and patient services, the report is published annually. It surveys all hospitals and includes data by state, region and metropolitan statistical area, according to Wesolowski. – by Casey Tingle
References:
www.aha.org/news/headline/2019-01-03-aha-medicare-medicaid-underpaid-hospitals-768-billion-2017
www.aha.org/statistics/fast-facts-us-hospitals
Disclosure: Wesolowski reports no relevant financial disclosures.