University of Virginia Library

Health Care Fees
Rise Due To Costs

Daily health care charges at
the University of Virginia
Hospital have been increased
$6 in order to meet actual per
day patient costs and to avoid
major losses under federal
medical programs.

The new room rate
schedule, approved by the
Executive Committee of the
University's Board of Visitors,
is effective immediately. Under
the new schedule, rates for
most private rooms increase
from the previous $65 to $71
per day. Rates for most
semi-private rooms will
increase from $62 to $68 per
day. Pediatric beds increase
from $59 to a total of $65 per
day.

Phase IV Changes

The new increase is
necessary, according to
hospital officials, because of
changes under Phase IV federal
economic controls.
Specifically, the federal policy
states that reimbursements to
hospitals for federal third-party
programs such as Medicare and
Medicaid be based on whatever
is the lowest amount, cost or
charges. Previously the
reimbursement was based
entirely on actual hospital
charges.

5.6% Increase

The University's increase
amounts to 5.6 per cent,
although a 6 per cent increase
in total per diem cost is
permitted under the guidelines.

If no daily increases were
made, hospital officials say, the
University would stand to lose
approximately $800,000 this
year from all third party
programs.

The last daily health care
rate increase at the University
was made in July 1972.