Figure 3

Relationship between total hospital costs and insurance payments (hospital revenue) for study cohort. There was a linear relationship between total hospital costs and insurance payments (hospital revenue); for every $1,000 reduction in total hospital costs, there was $1,009 reduction in insurance payments (hospital revenue). Thus, even with a significant proportion of patients treated by prospective payment (Medicare/Medicaid), there remains a strong relationship between costs and revenue. Dashed lines are 95% confidence intervals.