Hi Everyone,
I was in a discussion with some colleagues about rate setting. There was a lot of back and forth. We are wondering how people interpret the regulations for recouping deficits from a previous year with the following year's rates.
For example, if I have a service that recovered 80% of its expenses this year, and I adjust my rates for next year, is it allowable for me to adjust such that recover not only 100% of the cost in the coming year, but also the 20% from the previous year?
Also, how does this apply to rolling out a new service? If I'm working to build my user base in the first two years of a new service and running a deficit, am I allowed to pay that deficit off in subsequent years until I'm at net zero?
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Andy Chitty
Executive Director, MGB Research Cores
Mass General Brigham
Boston MA
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