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Hospital ownership changes and charge-to-cost shifts

Author

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  • Beniwal, Sukriti
  • Shakya, Shishir

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.

Suggested Citation

  • Beniwal, Sukriti & Shakya, Shishir, 2024. "Hospital ownership changes and charge-to-cost shifts," Economics Letters, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:ecolet:v:241:y:2024:i:c:s0165176524002258
    DOI: 10.1016/j.econlet.2024.111742
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    More about this item

    Keywords

    Hospital pricing; Cost-to-Charge Ratio (CCR); Ownership transitions;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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