Medicare Underpayments to Hospitals Exceed $100 Billion in 2024
• Medicare underpayments to hospitals totaled more than $100 billion in 2024, according to testimony provided to the House Ways and Means Committee by the American Hospital Association. • Hospitals are managing significant cost pressures while treating a sicker, more medically complex, and aging patient population, with persistent misalignments between care provision and reimbursement rates. • The financial strain reflects broader healthcare system challenges as providers struggle with inadequate government reimbursement alongside rising operational costs.
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