Payments Vary Widely Among Rhode Island Hospitals for Same Services

Payment variation exists in almost every hospital market in the country, and in the Rhode Island commercial arena, some hospitals received twice the amount of reimbursement for similar care provided, according to a report prepared for Rhode Island's Office of the Health Insurance Commissioner and the Officer of Health and Human Services.

The report summarizes hospital payment data in Rhode Island within the 2010 calendar year. Rhode Island officials sought to seek how average hospital payments varied among commercial insurers and public payors and how rates varied among hospitals. Here are some of the report's major findings:

•    Commercial plans paid much more to two main hospital systems: Lifespan and Care New England Health System, both of which are based in Providence.

•    For inpatient and outpatient care combined, the highest-cost hospitals were Women & Infants, Kent Hospital, Rhode Island Memorial and Newport Hospital.

•    For inpatient care, Medicaid had the second-highest payment level to hospitals, putting Rhode Island far above average among other states for Medicaid hospital payments.

•    Commercial health insurers paid 66 percent more than traditional Medicare for similar services and 35 percent more than Medicaid managed care plans.

To read the report in its entirety, click here (pdf).

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