In the fall of 2021, Mom went to the hospital for a procedure to correct a condition that had been bothering her for years. This was an outpatient procedure that usually takes about an hour, but because of her advanced age, the surgeon wanted to keep her in the hospital overnight for observation after the procedure.

The procedure took a little longer than expected, but otherwise went smoothly. There were no complications overnight, so she returned home the next day. After a few weeks to heal, her condition went away completely. A successful operation!

Three months later, the hospital sent us the bill: $24,467.10. Her insurance paid $24,396.23. She owed the hospital exactly $70.87.

So how much did the hospital spend to determine that the procedure cost exactly $24,467.10? And how much to determine that the insurance would cover exactly $24,396.23?

Was it more than $70.87?

Postscript: A year after the procedure, Mom received a check from the hospital for $70.87. The accounting department had reviewed her case and determined that she didn’t have to pay anything after all.