Healthcare Business News

Hospital reimbursement rates rose 2.7% in 2012, up from 2011

By Melanie Evans
Posted: January 15, 2013 - 3:00 pm ET

The reimbursement rates paid to acute-care hospitals increased 2.7% last year after a slowdown in 2011 that contributed to an overall deceleration in hospital spending, preliminary figures from the U.S. Bureau of Labor Statistics show. Hospital reimbursement rates increased 2.2% in 2011.

The Bureau of Labor Statistics reports reimbursement rates paid to hospitals in its Producer Price Index.

For December, hospital reimbursement rates decreased 0.2%, the preliminary figures show, compared with an increase of 0.3% the same month the prior year.

Advertisement | View Media Kit


Hospital reimbursement rebounded in 2012 for Medicare, private insurers and self-pay patients and accelerated slightly for Medicaid. Medicare reimbursement rates increased 2.1% last year after slowing to 1.5% in 2011 from the 2.8% growth reported in 2010. Medicaid reimbursement rates climbed 1.7%, a modest acceleration after the prior year's 1.2% growth, which followed a 0.4% drop in rates in 2010. Rates for all other payers, including private insurers and self-pay patients, increased 3.6% in 2012 after the 3.3% growth in 2011 and 4.7% growth in 2010.

Physician-office reimbursement slowed last year to 1.3% from the prior year's 1.5%. The figure excludes mental health services. For the month of December, physician office reimbursement rates increased 0.1%, an identical gain to the same month the prior year.

What do you think?

Share your opinion. Send a letter to the Editor or Post a comment below.

Post a comment

Loading Comments Loading comments...



Switch to the new Modern Healthcare Daily News app

For the best experience of on your iPad, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.