Assessing the Complex and Evolving Relationship between Charges and Payments in US Hospitals: 1996 – 2012
2016
Background In 2013 the United States spent $2.9 trillion on
health care, more than in any previous year. Much of the debate around slowing
health carespending growth focuses on the complicated
pricing systemfor services. Our investigation contributes to knowledge of
health carespending by assessing the relationship between charges and payments in the inpatient hospital setting. In the US, charges and payments differ because of a complex set of incentives that
connect healthcare providers and funders. Our methodology can also be applied to adjust charge data to reflect actual spending.
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