Variability in Medicare Payments

Health Journalist Shannon Brownlee offers commentary on U.S. health care costs in the Baltimore Sun:

I have to refute one of the statement that she made however. Ms. Brownlee states that Medicare pays more to hospitals in L.A. than Salt Lake City because hospitals in L.A. have higher volumes. There are many factors that effect a hospitals payment from Medicare. There are labor market adjustments, disproportionate share adjustments, and the higher cost of living associated with living in a large metropolitan area.