North Carolina has long been a hot bed of expensive hospital bills. They regulate the billing through an agency for workers’ compensation and allow a percentage off charges. Those of you that know me, know I find percentage off charges meaningless.
Recently, they adjusted the allowable percentage of charges from 95 percent down to 78 percent. This change was supposed to create savings for workers’ compensation hospital bills. Shockingly, the average hospital charge increased dramatically and more than offset the increased percentage off charges discount. This is an example of why a discount off charges is meaningless. We need to establish a fair base for services, be it cost up or market driven, and work from there. This is why it is critical to develop alternative cost control methods in areas where the laws or cost containment models are broken. Competition creates value.