Hospitals need to evaluate break-even point for Medicare
HMC has found that current conditions demand hospitals consider the Medicare break-even point (BEP) as a key strategy for profitability. Medicare is typically the single largest hospital payer by far, covering 45 percent to 65 percent of all inpatient costs. HMC research of 40 facilities revealed only 10 percent of them were profitable with Medicare, and 10 percent were on the cusp of Medicare profitability. The large majority of hospitals lost significant money on Medicare work.
With the healthcare reform bill now law, hospitals face an even greater payment reduction risk. In light of this, HMC found its more successful clients proactively reevaluating their Medicare management and reimbursement strategies. For more on this, please see the HMC press release today.
