What if we only collected money from Medicaid and we were not paid enough from that source to cover the costs of the care we delivered?
What are some risk factors when making decisions regarding capital projects? Provide details.
I was just thinking about revenues in general and this thought came to me. We need to make sure that when we are doing our capital and investment planning that we are looking carefully at our payment sources. By this, I mean, where do we get our revenues? Are we health care and do we collect insurance, Medicaid, Medicare and private money. Are we balancing our revenue sources so we are not relying on just one source of revenues? What if we only collected money from Medicaid and we were not paid enough from that source to cover the costs of the care we delivered? Then we would fail, right? We need to make sure the money we have coming in is balanced and that we are collecting more from some areas to cover the areas where we collect less. For example, when we accept payment contracts, we agree to accept what they pay us. Maybe, we have the cost of $300 for a test or procedure but Medicaid will only pay $3.00 for it, but Medicare will pay the full $300 or more. How do we balance our revenues and our costs? Thanks for sharing.