By NextBestFitRun the Hospital Transition Fund
Years 1–5 · UHA regional officesDiscuss this step
Pros & cons of this step
Pros
- +Prevents abrupt closures while hospitals cut billing overhead (8.5% of revenue). Jiwani et al. 2014.
- +Conditions money on restructuring.
Cons
- −Rewards hospitals that charged the highest commercial prices They get the most transition money.
- −Temporary funds create pressure to make them permanent.
- Stability vs. rewarding past market power.
Trade-off behind each cost item
- Hospital Transition Fund+$38.3BEach year's payment is the year's taper share of the annual shortfall.
Trade-off behind each system change
- Distressed-hospital support (state bailouts, HHS Provider Relief-style funds)Predictable and conditional; may not prevent every closure.