tci Medicare Compliance & Reimbursement - 2016 Issue 3

Budget: What Is Marginal Profit?

Get to know the new term that’s helping policymakers decide your fate. “Marginal profit” is a new financial indicator the Medicare Payment Advisory Commission (MedPAC) is using this year, and it’s higher than the traditional straight profit margin figure. The figure is “the profit margin that can accrue to a provider for seeing the next incremental Medicare beneficiary,” MedPAC Chair and physician Francis Crosson explained in the December meeting. “We use that information to help us understand the range of financial performance that we’re viewing, but we use it advisedly.” &ldquo...

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