Charity care hammers hospital bottom lines
Hospitals and physicians across the United States have provided increasing amounts of uncompensated care over the past few years as the economy has deteriorated, but some fear their ability to meet the demand may be unsustainable.
According to a recent report by the Pennsylvania Medical Society (PMS), 57 percent of Pennsylvania physicians surveyed in a statewide poll said the demand on their time for charitable care increased in 2009.
“Our research indicated a strikingly high level of charitable care provided by Pennsylvania Medical Society members,” said Peter Lund, MD, founder of the Institute for Good Medicine at the PMS. “Even though our physician members are doing more for the uninsured and underinsured, many feel they’re reaching their limit.”
Lund noted that 62 percent of PMS members across all specialties say they have reached an unsustainable level of charity care. The survey revealed that 80 percent of PMS physicians donate their time and resources for an estimated value of $400 million.
Another 2009 study, by the Greater Cincinnati Health Council, revealed that Cincinnati hospitals provided more than $276 million in uncompensated care in 2008, a 15 percent increase over 2007.
Colleen O’Toole, the Health Council’s president, said the numbers for 2009 would likely be even higher.
“In this tough economic downturn, people struggle to pay for basic everyday needs, such as housing, food and gas,” said O’Toole. “This makes the safety net even more important for those with unexpected medical bills.”
O’Toole said approximately half of the region’s acute care hospitals reported operating losses in 2008.
Economic conditions in states like Minnesota have grown so bad that some hospitals are being forced to reduce charity care.
Minneapolis-based Hennepin County Medical Center faces serious budget cuts in 2010, and hospital officials have said they cannot continue to absorb losses in state funding and still provide uncompensated care to an increasing number of uninsured patients.
According to HCMC’s chief financial officer Larry Kryzaniak, uninsured patients who do not live in Hennepin County will be refused clinic appointments and lose access to pharmacy services. HCMC will still treat emergency room patients.
