Hospitals stay in the Medicare system for a variety of reasons, even though the reimbursements are small. It provides a large volume of predictable revenue to

Hospitals stay in the Medicare system for a variety of reasons, even though the reimbursements are small. It provides a large volume of predictable revenue to pay for fixed costs, it is necessary for some residency/specialties and medical schools, etc. As long as Medicare and the cash-medicare-1.5 were an all or nothing bundle, it would probably work. I have noticed a lot of doctors refusing to take medi-cal (Medicaid) and some other doctors who won't take any Medicare and some who won't take insurance at all, but these tend to be specialists and not hospitals.