Study: Hospital Outpatient Costs Lower in States With Fixed Fee Schedules

The Workers Compensation Research Institute has found that states with workers’ compensation fee schedules based on a percent of charges have higher hospital outpatient costs compared with states that have fixed-amount fee schedules.

Advertisement

Fixed-amount fee schedules are those that reimburse specific amounts to hospitals for each procedure or group of procedures, similar to fee-for-service. In states that paid hospital outpatient fees based on a percent of charges, such as Florida and North Carolina, outpatient costs were up to 91 percent higher than the median costs of states with fixed-amount fee schedules.

In addition, hospital outpatient costs were 39 to 98 percent higher in states that had no fee schedules for workers’ compensation compared with states that had fixed-amount fee schedules.  

More Articles on Hospital Costs:

Facility Fees at Hospital-Owned Physician Offices Drive Up Cost of Care
How to Create Sustainable Hospital Financial Improvement: 3 Steps
5 Steps to Identify Cost Savings in Hospital Supply Chains

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.