Study Claims Hospitals Charge 2.5X for the Uninsured

[The Rabbi]

Rehash of the point that there is a difference between what is charged and what is actually collected.

[Harold Tuttle]

also they report the unpaid expenses as charity for the beancounters

so those "28 dollar" aspirin are worth a spreadsheet donation of "200 dollars" to community good

[Firethorn]

From what I've heard, you can frequently negotiate lower prices with providers if you have cash in hand.

From what I've heard, if you have to bill somebody instead of them paying cash(or with credit card), you might as well write off half the bills as 'no payment'.

[nico]

From what I've heard, you can frequently negotiate lower prices with providers if you have cash in hand.

From what I've heard, if you have to bill somebody instead of them paying cash(or with credit card), you might as well write off half the bills as 'no payment'.

I forget the exact percentage, but I know for a fact that my dad (and a lot of other dentists) gives a significant discount if you pay cash.

He collects more than 50% of what he bills, but, for a given month, it's not usually 100%. 

[allmons]

That is very good, Nico. I work for a successful hospital, and we do good to collect 35%! Your Dad's discounts make great sense.

[Firethorn]

That is very good, Nico. I work for a successful hospital, and we do good to collect 35%! Your Dad's discounts make great sense.

Thus, why on average they charge 2.5 times as much for 'uninsured' patients:  2.5*.35 = .875, or they're STILL earning less, on average, than patients with insurance.  Matter of fact, they'd need to charge nearly 3 times the insurance rate to break even. (2.96)

I'm willing to bet that most of those paying the 2.5 times rate are being billed for it.  Offer to pay cash, up front, and they don't have to worry about collection averages, debt collection services, etc...  It's also substantially cheaper than dealing with insurance.  I've heard of some dentists working after hours for cold hard cash and making some real deals, but they're probably not reporting that income.

[nico]

I've heard of some dentists working after hours for cold hard cash and making some real deals, but they're probably not reporting that income.

The bottom line is money talks.  My dad has scheduled patients at weird hours to accommodate cash-paying patients on several occasions.  That income is reported just like anything else.