Hospital Cost-to-Charge Ratio Explained

Most Hospitals in America Use the Cost-to-Charge Ratio to Estimate Their Costs for Specific Services Such as an MRI, Surgery or Endoscopy. However, the Cost-to-Charge Ratio is Inaccurate. The Cost-to-Charge Ratio is Calculated Based on Total Costs Divided by Total Billed Charges. That Ratio is then Multiplied by the Billed Charges for a Specific Service... Such as an MRI, Surgery or Endoscopy. HOWEVER, A Hospital's Billed Charges Are Intentionally Inflated for Specific Services to Increase Reimbursement... This Practice is Called 'Strategic Pricing' or 'Strategic Rate Setting.' Therefore, When the Cost-to-Charge Ratio is Applied to the Inflated Charges, It Results in Artificially Inflated Costs. Sources HERE: https://vimeo.com/489013784 AHealthcareZ is 200+ Healthcare Finance Educational Videos. 💥 BOOK: Check out Dr. Bricker’s Book 16 Lessons in the Business of Healing here: https://www.ahealthcarez.com/healthca... AHealthcareZ Viewers Include: Employee Benefits Professionals, HR, CFOs, Insurance Brokers, Benefits Consultants, Doctors and Nurses in Leadership Roles, Hospital and Health System Administrators, Health Insurance Carrier and PBM Professionals, Pharma and Med Device Professionals, Academic Professors and Students in Healthcare Administration and Public Health. 90,000+ Views Per Month Across All Platforms. Visit AHealthcareZ.com to Subscribe to the Healthcare Finance Video Newsletter. #HealthcareCosts #HealthcareIndustry #CostToChargeRatio