Medicare and Medicaid underpaid U.S. hospitals by $57.8 billion in 2015, according to the latest data from the AHA's Annual Survey of Hospitals. Underpayment occurs when the payment received is less than the costs of providing care, that is, the amount paid by hospitals for the personnel, technology and other goods and services required to provide hospital care. Medicare underpayments last year totaled $41.6 billion and Medicaid underpayments $16.2 billion. In addition, hospitals last year provided $35.7 billion in uncompensated care, meaning care for which no payment was received from the patient or insurer.