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Health Governance Report, February 2011

 

Most hospitals lose money on Medicare. It typically only reimburses 85%–90% of costs, and it usually takes cost shifting to private plans for a hospital to stay in the black. The equation looks like this: Take the (hopefully) positive margins from private payer business and subtract the (usually) negative margins of Medicare and Medicaid business, and what’s left over, if anything, is profit.


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