Relationship between costs and revenue in healthcare organizations.

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Relationship between costs and revenue in healthcare organizations. Title of Article: Private-Payer Profits Can Induce Negative Medicare Marginsc. Authors Name: Jeffrey Stensland, Zachary R. Gaumer, and Mark E. Millerd. Name of Journal: Health Affairse. Date of Journal: 2012f. Volume: 25g. Number: 2h. Pages: 1-7i. Publisher of Journal: The People-to-People Health Foundation, Inc. Healthcare Finance Synopsis This Article is about the relationship between costs and revenue in a healthcare setting. It tries to compare the relationship between the self insured health services and Medicare services. It draws relationships of how increase or decreases in medical costs affect revenues of a healthcare organization. The article tries to find out how efficient the assumption that healthcare organizations have little control over their organizations is. The article also views how market share and costs are related and how these organizations operate in order to set their positions in the market. It shows that organizations with high costs realize more profits. General ThemeThe theme of the author is that healthcare organizations costs are related to financial resources of a healthcare organization.

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