5-1

HOSPITALS AND THE COST OF CARE

St. James Hospital has always been a Medicare and Medicaid provider. Of late, due to the percentage of patients under these plans, the hospital is considering not renewing their provider contract for the next year. Levels of reimbursement have been declining every year for the past ten years. The percentage of patients has continued to increase each year.

What factors must St. James Hospital consider in making this decision? How might this affect the hospital in the future if they no longer treat Medicare or Medicaid patients?

Response Guidelines

Respond to the posts of any two of your peers. What factors did your peers leave out? Why are these factors so important? Also, from a doctor's perspective, how might this change affect you as a doctor?

Respond to these questions using available resources from your text, the Capella University library, and the Internet. Make sure to include the source citations and references for any outside sources used. Your reply should be in approximately 250–400 words and in APA format.