Saturday, June 15, 2013

Blood Infection Inverse Relationship Tween Private Insurance and Hospital Revenue Stream

Complications related to blood infections create an inverse relationship of streaming revenue between private health insurance payers and the hospital.  Diagnosing and treating illness in a hospital often includes needles, and tubes entering the body.  Enough germs entering the body can develop an infected patient who is now more costly for the hospital to care for.

Infected patients can require intense treatment measures with a cost that far exceeds the contracted reimbursement rate.  With a longer length of stay hospitals negotiate to retrieve up to 75 percent of the cost above the defined fixed rate. 

Upon audit one can determine that a blood infection will cause the private health plans risk reserve money to decrease while the hospital's deposited funds will increase.  Complications related to blood infections costs the private health insurance plan more money.

Long term community health planners expect Private Health Insurance Plans to begin to mandate hospital participation in less invasive diagnostic practices as a way to reduce the incidence of blood infections.


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