PMMC Blog Hospital Finance: Decoding Lesser of Charges Insights

Lesser-of charge hits are increasingly eating into hospital’s revenue and have increased 30% year over year.Out of the health systems included in this survey, 43% saw an increase in lost revenue specifically due to lesser-of charges.These often-overlooked cost adjustments can greatly affect a hospital's financial health. Mastering these adjustments is vital for boosting financial performance and requires strategic complexity of balancing market position, price transparency, patient affordability, and the effects of lesser charges. Understanding the intricate relationship between these factors is essential for optimizing net revenue and remaining financially secure. A comprehensive, data-driven approach to decoding thesenuances helps ensure that hospitals can continue to provide quality care while navigating challenging financial landscapes.