Shorter hospitals stays=more money for hospitals

Back in the day, hospitals received insurance payments for each day you were in the hospital. This method of billing created an incentive to keep you in the hospital for prolonged stays. The more days in the hospital, the more money the hospital made. Now, hospital stays are based on a code system called diagnoses-related group (DRG). Every diagnosis has a code attached to it. That code signifies the amount insurers will reimburse the hospital.  

Specialists in the hospital have a binder that lists the DRG codes, how much the hospital is reimbursed for each code, and the maximum number of days the payment covers. These specialists review your chart to create the highest billing code that will match a diagnosis. For example, you may have come to the hospital with non-threatening “angina pectoris” (chest pains), a diagnosis that brings the hospital $5,221 in revenue.  By upgrading the diagnosis to “acute myocardial infarction with cardiovascular compromise,” the hospital would receive $15,731. The hospital is reimbursed for this amount whether you stay two days or ten days. Thus, the shorter your hospital stay the more profitable your admission is for the hospital. Hospitals also have specialists whose job it is to get you out of the hospital as fast as possible, sometimes harassing your doctor or family members.

Of course, getting kicked out of the hospital quickly isn’t necessarily a bad thing. You are probably better off at home, away from bad bugs, bad food, and interrupted sleep. Plus, you’re helping your hospital make more money! 

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