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- The ultimate expression of channeling.
- FedMed contractually guarantees hospitals a minimum level of annual utilization.
- This commitment, defined as Targeted Bed Days, is calculated using figures from participating FedMed payors and the Centers for Medicare & Medicaid Services (CMS) Data Hospital Profile.
- If Target Bed Days are not met, FedMed will issue a shortfall payment to the participating hospital in the amount equal to the difference between the number of Actual Bed Days and Targeted Bed Days multiplied by Operating Income per Bed Day.
- FedMed's goal is to introduce new payors into the relationship and increase the Bed Day commitment.
- If actual Bed Days exceed the Target Bed Day amount, FedMed will adjust the Target Bed Days upward for the following contract year.
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