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University of Miami Percentage of Medical Cost Incurred by Patients Discussion

University of Miami Percentage of Medical Cost Incurred by Patients Discussion

Question Description

The state has announced that, effective July 1, 2021, all Medicaid rates paid to physicians and hospitals may be reduced by 30 percent. Today, Medicaid pays Medical Associates on average 60 percent of gross billed charges.

Further reductions in reimbursement may require management action. Options include no longer accepting Medicaid, no longer accepting Medicaid for ambulatory surgery, and/or maintaining a quota for Medicaid patients. Other options may also exist. In 2019, Medicaid accounts for 9 percent of all appointments and 5 percent of all ambulatory surgeries.

Identify two possible options for Medical Associates to consider, with implications.

Considering your identified two options, what strategy do you recommend and why? ( 350 words

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