Archive for May 10th, 2013

% Of Savings Fee – Scam Of The Century?

Friday, May 10th, 2013

scam1

In the article,  Transparency And The Fallacy of Charge Masters  the author exposes the fallacy of “charged based negotiations” with hospitals.

“The charge masters are totally irrational…….over time, hospitals raised charges in anticipation of negotiating discounts with private health insurance companies while maintaining their revenue streams……….Over the years, the charge masters have become more and more disconnected from reality.”

Yet third party intermediaries love charge masters. The higher charge master rates are, the higher their fees.

Negotiating hospital bills and charging fees based on a percentage of savings is a billion dollar business in the United States. It continues because payers won’t stand up and say “enough already, your fees are too high……let’s negotiate your fees to a more reasonable level, based on a flat fee per claim or a percentage applied to a universal benchmark such as Medicare!”

Editor’s Note: To pay a percentage-of-savings fee off an existing contract is insanity.

http://blog.riskmanagers.us/?p=11052

The Rest Of The Story About Hospital Pricing

Friday, May 10th, 2013
PaulHarvey
The recent Medicare report on variation in hospital “prices” is not exactly news. In fact, I wonder why anyone (including the NY Times and NPR) covered it, let alone make it a lead story.

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