An Examination of Costs, Charges, and Payments for Inpatient Psychiatric Treatment in Community Hospitals

Abstract

Consistent with past research, the results suggest that previous attempts to control pricing may have led to unintended consequences, including a large gap between charges and reimbursed amounts, potential cost shifting between payers, and potentially extended lengths of stay to offset reduced per diems. The lack of transparency in pricing makes it challenging to estimate the cost to society for a day of psychiatric hospitalization.