Reference no: EM133944975

Problem

The course textbook indicates Medicare patients make up 42% of a hospital's typical volume and Medicaid patients make up 16%. Both types of insurance coverage pay the hospitals less than what they spend on care for the patients. For Medicare the total shortfall for hospitals nationwide was $56.8 billion in 2019. For Medicaid the total shortfall for hospitals nationwide was $19 billion. Medicare pays 87 cents for every dollar spent on care. Medicaid pays 90 cents for every dollar spent on patient care (Epstein & Schneider, 2022). In addition, hospitals provide charity care, and some patients do not to pay toward their bills, which is considered bad debt.

A. Evaluate why hospitals and medical organizations continue to accept patients who are covered by Medicare or Medicaid when they lose money on patient care costs.

B. Discuss ways you feel medical organizations can provide quality care for all patients or groups of people regardless of their health care coverage and ability to pay for care. Get the instant assignment help.

1. If medical organizations discontinued providing care to patients covered by Medicare or Medicaid specific groups of people may be negatively affected. Consider the diversity, equity, and inclusion (DEI) initiatives that many health care organizations are incorporating, in your response.

C. Discuss the financial implications of gross uncollectibles on the bottom line of the health care institution. Provide your rationale for your response.

D. Identify at least one method a hospital can use to create new revenue streams to overcome financial losses. Provide your rationale for the method and include the target market.