Markups for Oncology Services Vary at the Hospital Level

Share this content:
Markups for Oncology Services Vary at the Hospital Level
Markups for Oncology Services Vary at the Hospital Level

FRIDAY, March 2, 2018 (HealthDay News) -- There is significant variation in markup of outpatient oncology services across hospitals in the United States, according to a study published online Feb. 17 in the American Journal of Managed Care.

Angela Park, from the Johns Hopkins School of Medicine in Baltimore, and colleagues examined variation in price markup by hospital and by oncology specialty using 2014 Medicare Part B physician reimbursement data. The markup ratio was defined as the charge billed divided by the amount allowed by Medicare. Data were included for 3,248 hospitals from all 50 states.

The researchers found significant variation in markup ratios by hospital across oncology specialties: radiology, median = 3.7 (interquartile range [IQR], 3.1 to 4.5); hematology/oncology, median = 2.3 (IQR, 1.8 to 2.9); medical oncology, median = 2.4 (IQR, 1.8 to 3.0); pathology, median = 4.1 (IQR, 3.1 to 5.1); and radiation oncology, median = 3.6 (IQR, 2.9 to 4.5). There was a correlation for higher markups with for-profit status for medical oncology services (coefficient, 0.29), and with prestige status for radiology and pathology services (coefficients, 0.53 and 0.65, respectively).

"Our findings contribute to emerging evidence that prestigious hospitals or large hospital chains use higher chargemaster pricing to 'anchor' negotiations and gain higher reimbursement from insurers," the authors write. "In this way, price markups contribute to the inflation of medical costs in the health care system and can affect patients' treatment decisions as their out-of-pocket costs increase."

Abstract/Full Text

Share this content:

is free, fast, and customized just for you!




Already a member?

Sign In Now »

Trending Activities

All Professions

Drug Lookup

Browse drugs by: BrandGenericDisease

More in Home

CDC Identifies Drugs Frequently Involved in Drug Overdose Deaths

CDC Identifies Drugs Frequently Involved in Drug Overdose ...

Oxycodone, heroin, and fentanyl ranked first in 2011, 2012-2015, 2016; cocaine ranked second or third

2017 Saw Slowing in National Health Care Spending

2017 Saw Slowing in National Health Care Spending

Slower growth in health care spending mainly due to use and intensity of goods and services

Inflammatory Bowel Disease, Prostate Cancer Linked

Inflammatory Bowel Disease, Prostate Cancer Linked

At age 60, men with inflammatory bowel disease have higher values of prostate-specific antigen

is free, fast, and customized just for you!




Already a member?

Sign In Now »