What is the relationship between uncompensated care and cost shifting? Why do providers now have limited...
What is the relationship between uncompensated care and cost shifting? Why do providers now have limited ability to shift costs?
Homework Answers
Cost shifting is a mechanism used to make up for revenue shortfalls when uncompensated care is delivered. Costs are shifted by charging extra to payers who do not exercise strict cost controls. Most payers now use some form of cost-containment mechanisms. Capitation and prospective reimbursement methods, in particular, have eroded the margins for cost shifting. Consequently, providers have less ability to provide uncompensated care through cost shifting than was previously possible.
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