Hospitals And The Health Care System

1248 Words5 Pages
Hospitals play an essential role when it pertains to our health care system. Hospitals are health care organizations that have a structured and well organized medical and professional employees, inpatient facilities, deliver medical, nursing and correlated services 24 hours a day, 7 days a week. Hospitals offer an approach that has a wide range of acute, recuperating and terminal care utilizing diagnostic and healing services. These medical services are utilized when a patient has acute and chronic conditions resulting from diseases in addition to wounds, injuries, and genetic anomalies. By doing this, they create and produce vital data and information for research studies, educational learning, and management. Traditionally, hospitals are…show more content…
Critical Access Hospitals are considered as rural hospitals and they have no more than 25 beds within the hospital and are located within 35 miles from any other hospital. Critical Access Hospitals are reimbursed differently by the CMA compared to traditional acute care hospitals, their compensations reveal their operating expenses instead of their volumes. Even through there are large amount of rural hospitals, a lot of them are at jeopardy with being shut down. The United States healthcare expenditures have escalated to 5.3 percent in 2014 to an overall amount of $ 3 trillion, as stated by the CMS Office to the Actuary. The recompenses a hospital gets for the services that were rendered differs and it’s established on the payer. Government payers which entail Medicare and Medicaid, set their rates, and almost all hospitals agree to accept them so they can have access and provide services to these individuals. The commercial payers allow the hospitals to negotiate the rates that are centered around the expected volume and additional factors; but a lot of commercial rates are determined based on the percentage of Medicare and certain formulas that utilizes Medicare rates in the role of baseline figures. For those reasons, reductions in Medicare rates could possibly have a greater effect on hospital funds compared to the Medicare patients (Marshall, 2016). Long-term care is needed
Open Document