Hospital ownership changes and charge-to-cost shifts

Sukriti Beniwal and Shishir Shakya

Economics Letters, 2024, vol. 241, issue C

Abstract: We examine hospital-level CCR – charges to Medicare-allowable costs – from 2011 to 2022 among governmental, for-profit, and non-profit hospitals and identify hospitals that charged extreme CCR of over 1000% of the cost. We tracked hospitals that experienced ownership transitions and found that governmental and non-profit hospitals’ average CCR increased by 161% and 99.7%, respectively, after transitioning to become for-profits. These higher CCRs affect uninsured patients, out-of-network patients, and casualty and workers’ compensation insurers.

Keywords: Hospital pricing; Cost-to-Charge Ratio (CCR); Ownership transitions (search for similar items in EconPapers)
JEL-codes: G22 I11 I13 L83 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:241:y:2024:i:c:s0165176524002258

DOI: 10.1016/j.econlet.2024.111742

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