The 5% · Austria · Hospital prices

Why Austria hospital prices are lower

Austria sets one hospital price — a DRG, a tariff, or a budget. The hospital takes it. It cannot charge each plan a different secret multiple. In the US the must-have hospital extracts 2–3× Medicare from job plans that cannot walk. The insurer passes that through. It does not set it.

LKF / DRG, not chargemaster

How it works

Social-insurance funds pay hospitals on a DRG-style catalog (LKF) inside state budgets. Physician fees are scheduled. An expensive year is a public rate, not a chargemaster production.

Why it holds

The unit of payment is the stay, posted. There is no 100-contract stack. The 5% still exist — cardiovascular, cancer, joints, old age. The invoice does not.

The invoices

SKUUnited StatesAustria
Hospital unit vs US commercialmodeled$1.0040¢
Bypass at that indexmodeled$89,094~$36,000

See iFHP, RAND hospitals, Papanicolas.

Also: Why Austria brand drugs · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Hospital voices · Back to The 5%