I bright this up in another thread. Most hospitals struggle to break even. Negotiated rates and the ability to cover costs for those that don't pay is a convoluted mess.
http://economix.blogs.nytimes.com/2009/0...imer/?_r=0
Drill into the linked paper for what the authors describe as chaos.
In short, anyone that believes the prices itemized on their hospital bill have anything to do with what's actually being charged is also likely to believe they're actually getting 50-75% off clothing at Kohls. Insurance companies and Medicare/Medicaid have negotiated rates regardless of what the itemization says; therefore, Medicare isn't telling the hospital to fuck off, just simply paying the negotiated rate.
http://economix.blogs.nytimes.com/2009/0...imer/?_r=0
Drill into the linked paper for what the authors describe as chaos.
In short, anyone that believes the prices itemized on their hospital bill have anything to do with what's actually being charged is also likely to believe they're actually getting 50-75% off clothing at Kohls. Insurance companies and Medicare/Medicaid have negotiated rates regardless of what the itemization says; therefore, Medicare isn't telling the hospital to fuck off, just simply paying the negotiated rate.
