There's significant variation in the average Medicare inpatient profit per case across hospitals in the United States. Objective Health has designed an infographic highlighting statistics that explore the extent of this variance.
1. Approximately 7 percent of hospitals lose more than $3,000 in profit per case with Medicare reimbursement, while about 11 percent range from negative $3,000 to negative $2,000 per case. (Note: For statistics 1-3, profit equals net revenue minus total cost.)
2. About 20 percent of hospitals lose between $1,000 to $2,000 in profit per case with Medicare reimbursement, and roughly 18 percent less lose than $1,000 or break even.
3. Approximately 17 percent of hospitals break even on profits per case with Medicare reimbursement or make up to $1,000, while slightly more than 5 percent of hospitals make more than $1,000 in profits per case from Medicare reimbursement.
4. The bottom quartile of hospitals lose an average of $2,800 in inpatient profit per case on Medicare reimbursement.
5. The top quartile of hospitals gain an average of $1,100 in inpatient profit per case on Medicare reimbursement.
6. Medicare cost per case for major joint replacement is 2.5 times higher in bottom quartile hospitals than it is in top quartile hospitals.
7. In bottom quartile hospitals, major joint replacement costs Medicare $10,700 on average per case compared with top quartile hospitals' cost of $4,200.
To view the full infographic, click here.
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1. Approximately 7 percent of hospitals lose more than $3,000 in profit per case with Medicare reimbursement, while about 11 percent range from negative $3,000 to negative $2,000 per case. (Note: For statistics 1-3, profit equals net revenue minus total cost.)
2. About 20 percent of hospitals lose between $1,000 to $2,000 in profit per case with Medicare reimbursement, and roughly 18 percent less lose than $1,000 or break even.
3. Approximately 17 percent of hospitals break even on profits per case with Medicare reimbursement or make up to $1,000, while slightly more than 5 percent of hospitals make more than $1,000 in profits per case from Medicare reimbursement.
4. The bottom quartile of hospitals lose an average of $2,800 in inpatient profit per case on Medicare reimbursement.
5. The top quartile of hospitals gain an average of $1,100 in inpatient profit per case on Medicare reimbursement.
6. Medicare cost per case for major joint replacement is 2.5 times higher in bottom quartile hospitals than it is in top quartile hospitals.
7. In bottom quartile hospitals, major joint replacement costs Medicare $10,700 on average per case compared with top quartile hospitals' cost of $4,200.
To view the full infographic, click here.
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