Hospital Incentives For Coronavirus Deaths: Truth Or Myth?

are hospitals being paid for coronavirus deaths

During the COVID-19 pandemic, hospitals have received additional funding for treating COVID-19 patients, particularly those on Medicare, which is the federal healthcare program for people 65 and over. However, there have been claims on social media that hospitals are being paid per coronavirus death, with some alleging that hospitals have a financial incentive to let coronavirus patients die. These claims have been fact-checked and found to be false. While hospitals are paid more for treating COVID-19 patients, there is no evidence of fraudulent reporting or that hospitals are being incentivized to let patients die.

Characteristics Values
Hospitals get paid more for listing patients as COVID-19 $13,000 for a COVID-19 patient on Medicare
Hospitals get paid more for listing patients as COVID-19 on ventilators $39,000
Hospitals receive additional money for treating COVID-19 patients Part of the Coronavirus Aid, Relief, and Economic Security Act, or CARES
Hospitals receive higher Medicare rates for COVID-19 patients 20% increase in Medicare payments
Average cost of a COVID-19 hospitalization for a Medicare patient $24,000
Reimbursement for more severely ill patients on ventilators $40,000

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Hospitals received additional money for treating COVID-19 patients

During the COVID-19 pandemic, hospitals have been burdened with the influx of patients requiring treatment for the virus. To help hospitals manage the costs of treating COVID-19 patients, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was passed in 2020. This legislation provides financial assistance to hospitals treating COVID-19 patients, particularly those under Medicare, which is the federal healthcare program for individuals 65 and older.

The CARES Act includes a 20% add-on payment for Medicare patients with COVID-19. Additionally, it established a $100 billion fund to reimburse healthcare providers for COVID-related treatment of uninsured patients. This fund aims to alleviate the financial strain on hospitals treating uninsured individuals with COVID-19.

Medicare payments are typically based on the severity of the patient's condition and the types of treatments provided. For COVID-19 patients, the average cost of hospitalization for a Medicare patient is about $24,000. However, for patients requiring more intensive care, such as those placed on ventilators, the reimbursement can be significantly higher, reaching up to $39,000 to $40,000.

While there have been concerns and allegations that hospitals are inflating COVID-19 cases and deaths to receive higher payments, these claims have been refuted. Fact-checking organizations have found no evidence of fraudulent reporting or falsified numbers. The additional payments provided by the CARES Act are intended to support hospitals in covering the costs of treating COVID-19 patients, particularly those under Medicare, and are not tied to the number of deaths.

The impact of the COVID-19 pandemic has been profound, with hospitals struggling to keep up with the influx of patients. The additional funding provided by the CARES Act aims to alleviate some of the financial burdens on hospitals treating COVID-19 patients, ensuring that they have the necessary resources to provide care during this challenging time.

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Hospitals are paid more for listing patients as COVID-19 deaths

Several sources allege that hospitals are being paid more for listing patients as COVID-19 deaths. A Minnesota state senator, Dr. Scott Jensen, claimed on Fox News that doctors are being incentivized to cite COVID-19 as a cause of death on death certificates. He suggested that hospitals receive $13,000 if a COVID-19 patient is admitted and $39,000 if the patient is placed on a ventilator. Jensen, a physician and Republican state senator, argued that these financial incentives could influence medical practice.

However, fact-checking organizations, such as PolitiFact and AP News, have found no evidence of fraudulent reporting or that hospitals are being compensated based on deaths. They confirm that hospitals receive enhanced payments for treating COVID-19 patients, particularly those on Medicare, but these payments are tied to patient treatment and the severity of their condition, not solely to the number of deaths. The higher reimbursement rates for COVID-19 patients aim to cover the increased costs and resource-intensive nature of treating these patients.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a 20% add-on payment for Medicare patients with COVID-19. Additionally, a $100 billion fund was established to financially assist hospitals in treating uninsured patients with COVID-19. While hospitals do receive higher reimbursements for COVID-19 patients, there is no evidence to support the claim that they are being paid specifically for listing patients as COVID-19 deaths.

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Hospitals are reimbursed for treating uninsured patients

The cost of uncompensated care, or care for which no payment is received, has been substantial for hospitals. Between 2015 and 2017, these costs averaged $42.4 billion annually, although they declined following the implementation of the Affordable Care Act's coverage expansion. Hospitals provide varying levels of financial assistance, depending on factors such as their mission, financial condition, and geographic location. They employ processes to identify patients' ability to pay and determine alternative funding sources when necessary.

The COVID-19 pandemic has exacerbated the challenges associated with uncompensated care. The economic downturn resulted in rising uninsured rates, potentially increasing the financial burden on hospitals. The federal government has responded by allocating additional funds to support hospitals treating COVID-19 patients, including the uninsured. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established a $100 billion fund to reimburse healthcare providers for COVID-related treatment of the uninsured at Medicare rates.

While there have been allegations that hospitals are inflating COVID-19 cases and deaths to receive higher reimbursements, fact-checking organizations have found no evidence of fraudulent reporting. The higher reimbursements for COVID-19 treatment are based on the increased costs and complexities of treating these patients, and hospitals are not paid more simply for listing patients as COVID-19 deaths.

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Hospitals are inflating the number of COVID-19 cases and deaths

Claims that hospitals are inflating the number of COVID-19 cases and deaths stem from the fact that hospitals receive higher Medicare payments for treating COVID-19 patients. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, created a 20% add-on payment for Medicare patients with COVID-19. This means that hospitals receive higher reimbursements for treating COVID-19 patients compared to patients with other illnesses.

Some people have interpreted this as evidence that hospitals have a financial incentive to overstate COVID-19 cases and deaths. For example, a Minnesota state senator claimed in an interview on Fox News that doctors are being encouraged to cite COVID-19 as a cause of death on death certificates, implying that money is a motivation. This interview sparked a frenzy of headlines on social media, with some users claiming that hospitals are making money by simply listing patients as having COVID-19.

However, fact-checking organizations have found no evidence of fraudulent reporting or that hospitals are falsifying their numbers. While it is true that hospitals receive higher payments for treating COVID-19 patients, these payments are tied to patient treatment and not deaths. The reimbursement for treating a COVID-19 patient is higher because these patients are often more costly and time and labor-intensive to treat. Additionally, the higher payments only apply to patients under Medicare, which serves individuals 65 and over.

Furthermore, the broad definitions of COVID-19 deaths vary by state and are not solely determined by hospitals. For example, in Oakland County, every individual who has died while infected with COVID-19 has been counted as a coronavirus death, according to the county's chief medical examiner. This includes individuals who may have died from other causes but were infected with COVID-19 at the time of death. While this may result in an overcount of COVID-19 deaths, it is not due to fraud or intentional inflation of numbers by hospitals.

In conclusion, while hospitals do receive higher payments for treating COVID-19 patients, there is no evidence to support the claim that they are inflating the number of cases and deaths. The higher payments are meant to cover the increased costs of treating COVID-19 patients, and the broad definitions of COVID-19 deaths are not solely determined by hospitals but by state and local health authorities.

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Hospitals are falsely labeling deaths as COVID-19

There have been claims that hospitals are being incentivized to falsely label deaths as COVID-19 due to higher Medicare payments for COVID-19 patients. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, created a 20% add-on payment for Medicare patients with COVID-19, as well as a $100 billion fund to assist hospitals in treating uninsured patients. This means that hospitals receive higher payments for COVID-19 patients, but there is no evidence that they receive higher payments for COVID-19 deaths specifically.

While it is true that hospitals are paid more for treating COVID-19 patients, the idea that hospitals are intentionally mislabeling deaths as COVID-19 deaths has been refuted by fact-checking organizations. PolitiFact and Kaiser Health News, for example, found no evidence of fraudulent reporting or that hospitals are falsifying their numbers.

However, some argue that the broad definitions of COVID-19 deaths may lead to an exaggeration of the number of deaths attributed to the virus. For instance, individuals who died by suicide or other causes but tested positive for COVID-19 may be counted as COVID-19 deaths. This has led to concerns about the accuracy of COVID-19 death counts and the potential impact of financial incentives on reporting practices.

Despite these concerns, it is important to note that the government's decision to pay hospitals more for treating COVID-19 patients is not necessarily indicative of any nefarious intentions. The higher payments are likely intended to cover the increased costs associated with treating COVID-19 patients, including the need for specialized equipment and additional staffing requirements.

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Frequently asked questions

Hospitals are not being paid for coronavirus deaths per se. However, they do receive additional funding for treating COVID-19 patients, particularly those on Medicare, which is the federal healthcare program for people 65 and over. This funding is provided by the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. There is no evidence that hospitals are inflating COVID-19 numbers or falsifying deaths due to this funding.

According to Dr. Scott Jensen, a Minnesota physician, Medicare pays hospitals $13,000 if a COVID-19 patient is admitted and $39,000 if the patient goes on a ventilator. However, the average cost of a COVID-19 hospitalization for a Medicare patient is about $24,000, and the reimbursement for more severely ill patients on ventilators is roughly $40,000.

COVID-19 patients often require costly and time-intensive treatment, and hospitals are reimbursed less than the cost of providing care. The additional funding is meant to help cover the expenses associated with treating these patients.

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