Study: Southeast Wisconsin Hospitals Shifted $851M to Commercial Insurers in 2010 to Offset Low Government Rates

Hospitals in southeast Wisconsin shifted $851 million in costs to commercial insurers in 2010 — up 39 percent from 2003 — due to the low rates from Medicare and Medicaid, according to a study from the Greater Milwaukee Business Foundation on Health (pdf).

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In that same eight-year time span, hospital charity care costs and bad debts increased by 116 percent, from $169 million in 2003 to $365 million in 2010. Other highlights of the study include the following:

•    The average southeast Wisconsin hospital commercial payment levels rose approximately 34 percent from 2003 to 2010.
•    Hospital operating costs increased 17 percent from 2003 to 2010. This was lower than the increases to the Hospital Producer Price Index (28 percent) and the CMS Hospital Market Basket (37 percent) for the same time period.
•    Overall market concentration of commercial insurers in southeast Wisconsin declined since 2007, suggesting that there was more competition among health systems.

Related Articles on Hospital-Payor Relationship:

St. John Providence Adopts New Payment Model With BCBS Michigan

Blue Shield of California Asks UCLA Medical Center to Stop “Relentless Rate Increases”

Atlantic Health System in N.J. Partners With Managed Care Company

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