Key result
Intensive care unit care for Medicare beneficiaries was reimbursed at only 83% of costs compared with 105% for floor patients, generating a $5.8 billion loss to hospitals.
Cohort (n=10,657,587)
Yes
Intensive care is common and expensive in the Medicare population, but inadequately reimbursed under the inpatient prospective payment system, leading to significant financial losses for hospitals.
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Medicare ICU reimbursement shortfalls may strain hospital finances; leaves open whether payment reforms are needed to sustain critical care capacity.
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Cooper et al. (2004) conducted a cohort in Medicare hospitalizations (n=10,657,587). Intensive care unit services vs. Floor care was evaluated on Incidence, cost, and payment for intensive care unit services. Intensive care unit care for Medicare beneficiaries was reimbursed at only 83% of costs compared with 105% for floor patients, generating a $5.8 billion loss to hospitals.
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