By NextBestFitHospital Transition Fund
Temporary payments to hospitals whose revenue under UHP rates falls more than 5% below baseline, tapering to zero.
Result
$38.3B
Per resident, per year
$112
÷ 341.1M people
Per household
$289
÷ 132.2M households
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | Year 1: 75% of the shortfall | 900 hospitals × $250,000,000 revenue × 10% shortfall × 75% | $16.9B |
| 2 | Year 2: 50% of the shortfall | 900 hospitals × $250,000,000 revenue × 10% shortfall × 50% | $11.3B |
| 3 | Year 3: 30% of the shortfall | 900 hospitals × $250,000,000 revenue × 10% shortfall × 30% | $6.8B |
| 4 | Year 4: 15% of the shortfall | 900 hospitals × $250,000,000 revenue × 10% shortfall × 15% | $3.4B |
| 5 | Total one-time cost | $38.3B |
By year
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
|---|---|---|---|---|---|---|
| $0.0B | $16.9B | $11.3B | $6.8B | $3.4B | $0.0B | $0.0B |
Inputs used
| Input | Kind | Value |
|---|---|---|
| Hospitals with revenue shortfall above 5% under UHP rates | estimate, low confidence | 900 |
| Average annual net patient revenue of those hospitals | estimate, low confidence | $250,000,000 |
| Average shortfall beyond the 5% threshold | estimate, low confidence | 10% |
| Share of shortfall covered, Year 1 | policy, high confidence | 75% |
| Share of shortfall covered, Year 2 | policy, high confidence | 50% |
| Share of shortfall covered, Year 3 | policy, high confidence | 30% |
| Share of shortfall covered, Year 4 | policy, high confidence | 15% |
Trade-off: Each year's payment is the year's taper share of the annual shortfall.