Hospital Getting More Medicare payment

Medicare Payment Information

For individual hospitals, the average Medicare payment is the total Medicare
payment made to the hospital divided by the number of discharges for each

The average hospital payments for the same DRG can vary. A hospital can get a
higher payment for any or all of the following reasons:

• It is classified as a teaching hospital
• It treats a high percentage of low-income patients (called a disproportionate

share hospital)
• It may treat unusually expensive cases (outlier payments)
• It pays its employees more compared to the national average because the
hospital is in a high-cost area. Note: A hospital’s Medicare payments are
adjusted based on the wage rates paid by area hospitals based on their
payroll records, contracts and other wage related documentation.

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Hospital Getting More medicare payment
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