Average Covered Charges

Average Covered Charges are the hospital's average charge for services covered by Medicare for all discharges in the diagnosis related group. These will vary from hospital to hospital because of differences in hospital charge structures. Average Total Payments are the average of Medicare payments to the provider for the DRG including the DRG amount, teaching, disproportionate share, capital, and outlier payments for all cases. Also included in total payments are co-payment and deductible amounts that the patient is responsible for and payments by third parties for coordination of benefits.