Hospital charges are determined by a number of factors including insurance type, discounts, services and the hospital.

 

Insurance

If you are insured your cost can differ based on the type of insurance you have whether it is purchased directly through you or through your employer. Government sponsored insurance such as Medicare or Medicaid will also cause a difference in billing. If you are insured you will be charged the same price for the same service as an uninsured patient. If you are insured your insurance company with negotiate discounts with the hospital on your behalf.

If you are uninsured you may qualify for discounts to help with the cost of your bill. For more information on discounts you may qualify for, please click here. 

 

Patient Factors

Each patient’s cost will vary due to differences in a patient’s hospital stay and medical needs. Some examples of patient differences which affect cost are:

  • Severity of illness
  • Length of Hospital Stay
  • Emergency Admissions
  • Differences in Physicians

Each physician will vary in their procedure for treatment based on each patient’s individual needs. If a physician calls upon another physician for help in diagnosis hospital charges may be made by more than one physician for the same patient.

 

Hospital Factors

Each hospital will have varying charges based on a number of factors.

 

Physician and Professional Fees

Physician charges, including those of surgeons, anesthesiologists and radiologist, are normally not included in hospital charges. These fees will be billed separately.

 

Technology

Each hospital’s technological equipment used for services varies and can affect costs. Newer technology may make costs higher.

 

Services

A hospitals range and frequency of services offered can affect costs. A hospital which specializes in a certain service may charge more for those services. If a service is not frequently done, it may cost more to render. Some hospitals do not have a full range of services and patients will be transferred to a secondary care facility for treatment.

 

Hospital Cost Structures

Hospitals differ in their approach to pricing based on operational costs. Some hospitals spread costs across all patients whereas some hospitals base pricing on specific services. Some services may cause the hospital to lose money so they will make it up by charging more for other services. Any of these situations can result in different charges among hospitals.

 

Capital Expenses

Each hospital’s debt and depreciation will be different which will affect costs to patients. A hospital with a large amount of debt, a new building or major renovation may have higher charges than a hospital not facing those expenses. Hospital leadership decisions may affect charges in various way.