AHA: Medicare underpaid hospitals by $41.6B in 2015

Both Medicaid and Medicare underpaid hospitals in 2015, according to an American Hospital Association report.

Using data from its annual survey of hospitals, the AHA determined Medicare underpaid hospitals by a total of $41.6 billion in 2015. For its analysis, the AHA said an underpayment occurred when aggregate payments received from Medicare were less than the costs of providing care.

Hospitals were paid 88 cents for every dollar spent caring for Medicare patients in 2015, according to the AHA.

In the aggregate, Medicaid payments to hospitals fell short by $16.2 billion in 2015. Medicaid paid hospitals 90 cents for every dollar spent caring for Medicaid patients, according to the AHA.

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