Health Watch USA Logo Kentucky's Certificate of Need and Fuzzy Math

Never Events
Healthcare in the USA
Health Care Value
Transparency Costs
Transparency Quality
Health Care Competition
Freedom of Information
 Subscribe Newsletter
 Report an Incident
 Misson & Positions
To contact Health Watch USA please  use the  following
E-Mail Address


Kentucky Using Fuzzy Math to Determine Hospital Cost Effectiveness

Kentucky uses revenues and not charges to determine if hospitals are cost effective in the determination if another Certificate of Need should be awarded. 

We calculate a hospital would have to charge three times above the Kentucky state average (not 50% more) before the State feels a hospital is not cost effective.  Here's why:   In our area, approximately 75% of patients have Medicare and Medicaid.  Medicare and Medicaid not only have reduced payments compared to private insurance but payments are approximately the same for all hospitals in the state.  This tends to reduce the difference in average revenues between hospitals.

If gasoline was healthcare, we estimate that Kentucky may have Pulaski residents paying up to $8 a gallon for gas before he would allow another gas station to be built.

News Article on State Cost Analysis     Health Watch Resonse to State Analysis