Need a response to this discussion post of a fellow classmate 75-100 words 1 Scholary Source APA format
Cost shifting in health care is done when insured patients are being charged more than uninsured individuals provide that both had the same service rendered by a certain health care provider or a hospital (Norman, 2018). It is a “strategy” within an organization to recuperate its losses and keep the business open. Cost shifting may be an effective way for an organization to keep its revenue and serves to be useful “temporary fix” for an organization to survive in the industry (Ahmed, 2015).
Through aiding hospitals in paying the cost for the uninsured patients, cost shifting becomes beneficial to the hospital and its employees, as a whole. For instance, if a certain hospital is able to get back its losses from uninsured patients by charging patients with private insurance more, one of the effects can be job security for its employees. However, long-term effects of cost shifting may cause higher premium on patients with private insurance thus making this a constant issue of concern for hospitals and insurance companies (Frakt, 2011; Frakt, 2014). With the birth of Affordable Care Act, Medicare reimbursements will decrease for good (Frakt, 2014). With these losses, cost-shifting is also an option for hospitals to counter such lowered Medicare payments (Frakt, 2014).
On the other hand, Affordable Care Act (ACA) requires every citizen or legal residents to be insured, so this in turn, expectedly, will prevent cost-shifting by health care providers as losses are not very much expected because most patients would be insured. It may not be the case everyone is seeing currently but I think this is what ACA is aiming to happen.
Ahmed, R. (2015). Cost-shifting strategy, organizational competitiveness ad survival: An empirical investigation. Summer Internet Proceedings, 17(1), 1-7.
Frakt, A. B. (2011). How much do hospitals cost shift? A review of the evidence. Milbank Quarterly, 89(1), 90-130.
Frakt, A. B. (2014). The end of hospital cost shifting and the quest for hospital productivity. Health Services Research, 49(1), 1-10. doi:1.111/1475-6773.12105
Norman, L. (2018). What is cost shifting? Chron, Hearst Newspapers, LLC. Retrieved on January 23, 2018 from http://smallbusiness.chron.com/cost-shifting-23849.html