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Limited Reimbursement Case Study

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How to Provide Care with Limited Reimbursement The one limiting factor to Medicaid growth is the low reimbursement rates offered by healthcare insurance companies which tend to put pressure on hospitals finances. The healthcare providers have noted that the small refund rates are a key obstacle to their participation with outpatient beneficiaries. Most medical practices often readily accept these compensation contracts due to their need to get new patients into their hospitals as soon as possible, which is quite sensible from a business point of view. Although, healthcare administrators ought to prove that they are an asset to the insurance payers. In the given case scenario, if the patient keeps up the visits for the three month period, then it can negatively affect profitability and breakeven point of the business. This can ultimately make it difficult for the hospital to define their patient coverage rates and pricing strategies which are critical to their future operation (Marquis and Carol). Therefore, it is vital for the management to have distinct policies that govern their practice, for example, encouraging staff to implement high-quality care while maintaining cost efficiency. …show more content…
The hospital management can alternatively decide to get into talks with the insurance payers after gathering actual figures and completing cost-savings analyses. These facts or carefully researched numbers can be presented as examples to the government insurance payers to act as proof of how the practice help keep the healthcare insurance agency solvent. Successively, the healthcare institutions can have some leverage to discuss better reimbursement rates for their various complex medical practices (Marquis and

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