Better Surgical Outcomes Costly For Hospitals by John Gever. MedPage Today. April 16, 2013.
The perverse effect--more surgical complications, the greater contribution margins--varied among payers. The bundled system of care payments now used by Medicare lessens this effect whereas private insurance practice tends to exacerbate it. Interesting observation in the article about Medicaid: Variable costs exceed revenues even when there were not surgical complications.
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