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Cost-Plus Hospital Pricing

Cost-Plus Hospital Pricing . HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR  Innovation

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Cost-Plus Hospital Pricing

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  1. Cost-Plus Hospital Pricing HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR  Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.com Website: www.hrmdco.com

  2. Hospital-related costs typically represent 45% of total healthcare costs • For hospitals, billed charges for the same procedures are not the same for all networks and/or carriers thereby leaving room for manipulation of network discounts • Under this repricing system, each hospital-related claim is individually negotiated to be on a cost-plus basis not a “billed charge minus” basis. • National and up-to-date databases are used to develop benchmark pricing onto which a fair profit margin is added for the hospital provider. • There is 95% hospital provider acceptance of the negotiated rate as it is typical higher than what the networks pay under the provider contracts • For hospital related claims, equivalent discounts off billed charges under this pricing method equate to minus 64% on average vs. minus 33% for typical major U.S. insurance carrier’s PPO Cost Plus Hospital Pricing

  3. Actual Example-PPO Network vs. Cost Plus $1,880,795 $1,130,134 41.33% $299,602 77.83% 377% difference

  4. This product/service is contained in the HR Specialty Products & Services Catalogue™ • Operational level details about this particular service provider can be obtained in conference with the vendor • The HR Mining &Distribution Co. is an independent and contracted representative of the vendor • Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo • Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com • Thank you for your potential interest in this fresh thinking Next Steps

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