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Medicare: Information on Medicare-Dependent Hospitals

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Report Type Reports and Testimonies
Report Date Feb. 28, 2020
Release Date Feb. 28, 2020
Report No. GAO-20-300
Summary:

Medicare pays hospitals set amounts based on the diagnoses of the Medicare patients they serve. Small, rural hospitals that meet certain eligibility criteria can qualify for additional payments.

If those hospitals serve a high proportion of Medicare patients, they can apply for the additional payments under the Medicare-dependent hospital program. We found that between 2011 and 2017:

The number of Medicare-dependent hospitals decreased by about 28% because, for example, they became ineligible for the program, merged with other hospitals, or closed.

The typical Medicare-dependent hospital saw profits decrease by almost 2 percentage points.

Line graph showing 193 in 2011; 193 in 2012; 176 in 2013; 155 in 2014; 136 in 2015; 136 in 2016; and 138 in 2017

Line graph showing 193 in 2011; 193 in 2012; 176 in 2013; 155 in 2014; 136 in 2015; 136 in 2016; and 138 in 2017

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