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Both Hospital A and Hospital B are paid by Medicare using the DRG methodology. Assume that...

Both Hospital A and Hospital B are paid by Medicare using the DRG methodology.

Assume that the reimbursement for the average Medicare patient (case weight of 1.0) is $2,600.

Hospital A has an average case-mix index of 1.32 and admits 24 patients who stay in the hospital a total of 192 days.

Hospital B has an average case-mix index of 0.95 and admits 35 patients who stay in the hospital a total of 238 days.

  1. Which hospital gets paid more?
  2. Which hospital gets paid more per case?
  3. Which hospital gets paid more per diem?
  4. Which hospital gets paid more for an appendectomy (case weight of 0.85)?
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