Patient Billing

Amount Generally Billed (AGB) Calculation

Gibson Area Hospital & Health Services (GAHHS) uses the “look-back” method to calculate the “amount generally billed’ (AGB) as required by federal law. The AGB is the maximum amount we will collect from a patient who is eligible for financial assistance under our Financial Assistance policy. The AGB percentage is based on all claims allowed by Medicare and private health insurers over a 12-month period, divided by the associated gross charges for those claims.


For the period April 1, 2014 to March 31, 2015, GAHHS billed $108,517,016 in gross charges to Medicare and to private health insurers, of which $45,404,318 in claims were allowed. This makes the AGB 41.8%.

Calculation: $45,404,318 divided by $108,517,016 equals 41.8%

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