The major problem with using the ratio of cost to charges applied to charges (RCCAC) method of hospital payment was
A) hospitals were often forced to shift costs, after applying the formula, to recover costs of charity and other unreimbursed care.
B) it was not effective in recovering all costs from all payers.
C) hospitals were unable to collect payments from Medicare.
D) hospitals experienced shorter hospital length of stay and could not recover their costs.
E) hospitals made no provision for research and development activities.

Question

Quizplus · Accepted Answer

The RCCAC method often led hospitals to shift costs to cover unreimbursed care, such as charity care, because the formula did not fully account for these costs.

The Major Problem with Using the Ratio of Cost to Charges