Providers Should Keep Watch on Payer Discount Increases

Although contractual allowances and discounts as a percentage of gross patient revenue continue their steady climb, a significant uptick in the first quarter of 2018 might be an indicator to U.S. hospitals to remain focused on payer mix and the shifts between payer categories.

In this analysis, hospitals across the United States were surveyed—the “all hospitals” group as well as four U.S. Census region (Northeast, Midwest, South, and West) comparative groups. Median deductions for the all-hospitals group are increasing at a rate of 0.14 percent per year.

Total Contractual Allowances and Discounts as a Percent of Gross Patient Revenue

Jeanne Slates is offering manager, IBM Watson Health.