> Medicare pays cost based rates (for all services) to small rural hospitals in part to ensure this. "Critical access hospital" is the keyword if you want to re

> Medicare pays cost based rates (for all services) to small rural hospitals in part to ensure this. "Critical access hospital" is the keyword if you want to read more. They pay extra to small hospitals that don't receive enough privately-insured patients to break even on standard Medicare reimbursement rates. For other hospitals, they pay rates that are below-cost, and hospitals charge private insurers extra to make up the difference.