According to the latest American Hospital Association's fact sheet (based on 2019 figures), Medicare and Medicaid underpaid U.S. hospitals by about $75 billion in 2019. This includes a shortfall of $56.8 billion for Medicare and $19.0 billion for Medicaid.
For Medicare, hospitals received payment of only 87 cents for every dollar spent by hospitals caring for Medicare patients in 2019.
For Medicaid, hospitals received payment of only 90 cents for every dollar spent by hospitals caring for Medicaid patients in 2019.
In 2019, 63 percent of hospitals received Medicare payments less than cost, while 58 percent of hospitals received Medicaid payments less than cost.
This shows there's been very minimal improvement since these figures were measured in 2017.
According to the American Hospital Association's 2017 figures, Medicare and Medicaid underpaid U.S. hospitals by about $76.8 billion in 2017. Underpayments occur when the payment received is less than the cost of providing care, that is, the amount paid by hospitals for the personnel, technology and other goods and services required by the hospital to function.
Medicare underpayments in 2017 totaled $53.9 billion and Medicaid underpayments $22.9 billion.
Also, in 2017, hospitals provided around $38.4 billion in uncompensated care. (Healthcare Finance News, 1-4-19)
To add to this, in 2017, 66 percent of hospitals received Medicare payments that were less than cost, while 62 percent of hospitals received Medicaid payments that were less than cost.