ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount
of $21,313.50. Outlier threshold for Medicare is $25,800.
(a) John admitted hospital A for pancreas transplant. The charges for John's
treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much
payment hospital A would get from Medicare?
(b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan's
treatment was same as John, $128,000, but cost to charge ratio for Hospital B
was 0.25. How much payment hospital B would get from Medicare?
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