For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John’s treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST7: The Economics Of Health Care
Section: Chapter Questions
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 For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount
of $21,313.50. Outlier threshold for Medicare is $25,800. 
(a) John admitted hospital A for pancreas transplant. The charges for John’s 
treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much 
payment hospital A would get from Medicare?

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