The Major Problem with Using the Ratio of Cost to Charges

The major problem with using the ratio of cost to charges applied to charges (RCCAC) method of hospital payment was

A) hospitals were often forced to shift costs, after applying the formula, to recover costs of charity and other unreimbursed care.
B) it was not effective in recovering all costs from all payers.
C) hospitals were unable to collect payments from Medicare.
D) hospitals experienced shorter hospital length of stay and could not recover their costs.
E) hospitals made no provision for research and development activities.

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