Charity Care Discount Calculation

Effective:  April 1, 2015

  1. Used the Hospital Decision Support System to extract prior fiscal Discharges by Primary Payor within Inpatient and Outpatient groupings prior to 120 days after Fiscal year end.
  2. Summarized each individual payor’s,  Patient Payments, insurance payments, account balance and Bad Debt to compute the expected allowed  payment for Medicare and  each Commercial insurance payor.
  3. Divided the Payment amount from Step 2 by the charges for each payor within Patient type inpatient and outpatient to obtain a Payment as percentage of Charges.
  4. Added Step 3’s Payment as percentage of Charges together for each payor within Inpatient or Outpatient group and divided these payment percentage by the total number of payors used in the calculation.
  5. Then added the Inpatient and Outpatient percentage together and divided by 2 to get the overall Amount Generally Billed Percentage to apply to facility charges.