NEW STUDY EXAMINES MEDICARE COSTS; CAPE HOSPITALS RANK BELOW OTHERS IN STATE

While Missouri hospitals last year charged barely more than the national average for the most common types of treatment covered by Medicare, Cape Girardeau's two hospitals charged even less.

That is the findings of a national study of Medicare costs for treatment of heart failure and shock, pneumonia and joint replacement.

The study of Medicare cases found that Missouri hospitals charged an average of $13,702, compared to a national average of $13,415.

The average costs at Cape Girardeau's Southeast Missouri Hospital was $9,464 and at Cape Girardeau's St. Francis Medical Center was $10,800.

Most of the Kansas City and St. Louis hospitals were on the higher end of the scale in terms of average costs.

Officials at Cape Girardeau's hospitals and the Missouri Hospital Association saw little value in the study.

"It means nothing," said Barbara Long, spokeswoman for the Missouri Hospital Association in Jefferson City. Long said the government pays Missouri hospitals only about half the cost of treating Medicare patients.

St. Francis Medical Center receives about 50 cents for every dollar charged in treatment of Medicare patients.

"We were underpaid by Medicare for our costs by about $4 million for the fiscal year ending June 30," said Gregory Pleimann, the hospital's vice president of finance.

With Medicare and various managed care programs, few patients pay the full bill, Pleimann said. The study, he said, doesn't show the health-care charges actually paid by the consumer.

Southeast Missouri Hospital's Jerry Sanders voiced similar thoughts. Sanders is assistant administrator for finance.

"I am happy to see we are not the highest charger, but I am not sure it really means anything," said Sanders. "It is too generalized to make a real conclusion."

Sanders questioned the value of lumping together the costs of treating such varied medical problems as heart failure and joint replacement.

Data Advantage Corp., a provider of health-care information, did the study. Data Advantage said its report was based on Medicare data but applied to hospital care for all patients because hospitals are required by law to have the same charge structure for all patients regardless of who pays the bill.

But Sanders said it is difficult to equate costs for Medicare patients to all patients. Medicare patients typically are 65 or older. They often have multiple health problems and have longer hospital stays than younger patients, Sanders said.

The average hospital stay in the case of heart surgery is probably longer for a 70-year-old patient than for a 30-year-old patient, he said.

Nevada hospitals led the nation in costs, averaging $18,781, the study said.

New Jersey hospitals charged the most for heart failure and pneumonia treatments, while Nevada hospitals charged the most for joint replacements.

Illinois hospitals charged an average of $14,722. That was about $1,000 more than Missouri hospitals, the study found.

Treatment of Medicare patients for heart failure and shock averaged $9,650 at Missouri hospitals, slightly more than the national average of $9,584.

Treatment costs in pneumonia cases averaged $10,531 compared to the national average of $10,038. In joint replacement cases, the average cost was $20,197 at Missouri hospitals. Nationwide, the average was $20,157.

The Missouri Hospital Association's Long said consumers shouldn't read too much into the study. The study only looked at three types of medical treatments. "You are getting a snapshot of a picture of a very small piece of what is going on in any hospital," Long said.