charging for ancillary items and services 4 myths (and realities) by ProQuest


More than two years ago, the Medicare Payment Advisory Commission reported that hospitals often charge much more than their cost for certain services. Given the facts that the shift to cost-based diagnosis-related group constitutes one of Medicare's most significant changes in 25 years, and that there is an increasing emphasis on healthcare price transparency in the US, it is important to dispel some myths about Medicare that have contributed to hospitals' confusion regarding charging, particularly for goods and services provided in ancillary departments. These myths are: 1. Restrictions on charging for routine services have necessitated restrictions on charging for routinely used items. 2. Routine supplies and equipment may not be charged separately in ancillary departments. 3. Some supplies are nonchargeable in ancillary departments. 4. All patients should be charged the same amount. Separating the Medicare-related myths from the realities can help control the confusion, produce more correct payment, and improve your Medicare compliance.

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