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Cost Shifting In Health Care: A Case Study

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Cost shifting when hospitals or healthcare provider’s charges insured patients more than the uninsured for the same services. Hospitals and health care providers used this mechanism to make up for the loss make by providing services to uninsured. Likewise uncompensated care is when hospitals or health care provider’s loss money for charity care and or due to the fact that patients who get treatment are unable or unwilling to pay for the healthcare services the received. (Shi, Singh pg238).
Hospitals cost shifting are becoming more of trend for example hospitals attract both patients and physicians with more expensive technologies and treatments. According Christopher W. Baugh and Jeremiah D. Schuur (2013) when observation is used as a billing status in inpatient areas without changes in care delivery, it’s largely a cost-shifting exercise — relieving the hospital of the risk of adverse action by the RAC but increasing the patient’s financial burden.(p303) …show more content…
Pharmaceutical companies are regulated by law to provide these discounts. As result of these law pharmaceutical companies shifted cost back to private paying patient by making medicine more expensive than what it is worth. According to article from IMS institute for health care informatics, patients with insurance are paying higher premiums deductibles and co paying or co-insurance for medicines.(2014)
To sum it up cost shifting and uncompensated care are being shift to patients who are insured. Hospitals and healthcare providers use these strategies recover from their loss due to those fact patients are unwilling to paid for their services. Cost shifting causes huge burden on patient

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