| Course | IHP 630 Healthcare Finance and Reimbursement |
|---|---|
| Module | Module 5 |
| Paper type | MS Healthcare Administration discussion post on hospital cost shifting |
| Length | About 370 words, 3 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | MS Healthcare Administration |
| Updated | September 2026 |
Free sample paper for IHP 630 Module 5
Module Five Discussion
We Cannot Charge Our Way Out
At our last finance committee meeting, a board member calculated that we lose about $19 million a year treating Medicare and Medicaid patients below cost, and proposed that we simply tell commercial insurers to pay more. It sounds logical: shift the shortfall to those who can afford it. The research this week suggests it rarely works that way, at least for a hospital like ours.
Frakt (2011) reviewed decades of studies on cost shifting and judged it real but modest, well below the figures often quoted in debates. The more rigorous recent studies found that only a modest fraction of any public payment shortfall shows up as higher private prices, and that whether a hospital can push private rates up hinges chiefly on how much negotiating strength it holds, not on how much they lose on public patients. If a hospital could charge commercial insurers more, it generally would already be doing so.
White and Wu (2014) tracked hospital behavior during years of sluggish Medicare rate growth and saw most facilities respond by reducing operating costs, including staff, rather than by raising prices to private insurers. Robinson (2011) added an important qualification from California. Hospitals in concentrated markets, facing few competitors, charged private payers more and tended to have higher costs, while hospitals in competitive markets responded to Medicare shortfalls by cutting costs. In other words, whether a hospital shifts costs or cuts them depends on its bargaining position.
That describes our situation precisely. We are one of three hospitals within twenty-five miles, and the regional system has far more negotiating strength than we do. Our largest commercial insurer can steer members to that system if we push too hard. Last year it offered us a 3% increase; demanding enough to cover a $19 million shortfall would mean asking for more than 20%, which would likely end in our exclusion from its network.
The evidence points us toward the harder path the board member wanted to avoid: lowering our costs and fixing our revenue cycle so we collect what we are owed. For classmates: how does your organization decide what rate increases to seek, and has market position ever limited what it could get?
References
Frakt, A. B. (2011). How much do hospitals cost shift? A review of the evidence. The Milbank Quarterly, 89(1), 90-130. https://doi.org/10.1111/j.1468-0009.2011.00621.x
Robinson, J. C. (2011). Hospitals respond to Medicare payment shortfalls by both shifting costs and cutting them, based on market concentration. Health Affairs, 30(7), 1265-1271. https://doi.org/10.1377/hlthaff.2011.0220
White, C., & Wu, V. Y. (2014). How do hospitals cope with sustained slow growth in Medicare prices? Health Services Research, 49(1), 11-31. https://doi.org/10.1111/1475-6773.12101
What the IHP 630 Module 5 instructions ask for
The Module 5 discussion in IHP 630 often asks you to evaluate the claim that hospitals shift costs from public to private payers and what that means for pricing and negotiation. Aim for an initial post near 400 words with a few empirical sources in APA 7, and add peer responses before the deadline. Summarize what studies actually find, explain how market power shapes the answer and apply the evidence to a real or realistic negotiation. Finish with a question that asks classmates how their organizations set or seek rates. IHP 630 graders notice clean headings in IHP 630 papers. IHP 630 names and dates need checking before IHP 630 submission. IHP 630 prompts vary by term, so recheck IHP 630 directions.
How this IHP 630 Module 5 discussion example is built
In this post, a composite finance director responds to a board member who wants commercial insurers to cover a $19 million public payer shortfall. Frakt's review shows cost shifting is modest and depends on market power, White and Wu show hospitals mostly cut costs under slow Medicare price growth and Robinson's California study shows concentrated hospitals raising prices while competitive ones cut costs. Applied to a hospital with limited bargaining strength, the evidence points toward cost reduction and revenue cycle repair. IHP 630 students can reuse this structure for IHP 630 work. IHP 630 claims here trace to cited IHP 630 sources. IHP 630 readers can adapt each section to IHP 630 data.
Where the IHP 630 Module 5 rubric puts the points
Cost-shifting discussions are typically marked on accurate summary of empirical research, understanding of market power, application to a specific negotiation or organization, balanced reasoning, APA 7 and peer responses that bring new evidence or perspectives. Strong posts show how the answer changes with market conditions rather than treating cost shifting as always true or always false. Marks fall when posts repeat industry claims without evidence or ignore the role of competition. IHP 630 marks favor careful formatting across IHP 630 sections. IHP 630 citations keep every IHP 630 argument credible. IHP 630 instructors weigh evidence heavily in IHP 630 grading.
IHP 630 Module 5 help: the mistakes that cost points
Posts on this topic in IHP 630 often accept the cost-shifting story as fact, rely on trade association reports and never ask whether the hospital has the bargaining power to raise prices. Others reject it outright without evidence. Summarize what the research finds, explain the role of market concentration, apply it to a real rate negotiation and pose a practical question. Share your organization's market situation and the IHP 630 prompt so the post fits your setting. IHP 630 drafts start well from a IHP 630 outline. IHP 630 feedback already received guides IHP 630 revisions. IHP 630 rubrics posted in Brightspace clarify IHP 630 expectations.
Get IHP 630 Module 5 written to your instructions
Share the IHP 630 Module 5 prompt and your organization's market situation. The post will summarize the evidence on cost shifting, explain the role of market power and apply it to your negotiations, within 24 to 48 hours, free the first time. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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IHP 630 Module 5 questions, answered
Where can I find a free IHP 630 Module 5 Discussion sample?
IHP 630 Module 5 is presented here in full as a finance director's post on cost-shifting evidence, market power and hospital responses to shortfalls.
Do hospitals shift costs to private insurers?
Research suggests some cost shifting occurs, but far less than often claimed, and mainly where hospitals have market power.
How do hospitals respond when Medicare pays less?
Studies find many hospitals cut costs, especially in competitive markets, rather than raising private prices.
Why does market concentration matter for hospital prices?
Hospitals with few competitors can negotiate higher private rates because insurers need them in their networks.
What can a hospital with little market power do about shortfalls?
Focus on reducing costs, improving the revenue cycle and adjusting its service mix rather than relying on rate increases.