Balancing Act: Local hospitals juggle charity care, sustainability

[TexasTowelie]

Northeast Mississippi hospitals give away millions in charity care annually, but they carry significantly higher loads of bad debt than other hospitals around the country.

Across the region, 14 acute care hospitals averaged $2.8 million in charity care annually for fiscal years 2011 to 2016. The data comes from cost reports hospitals make to the Centers for Medicare and Medicaid, compiled by the Pittsburgh Post-Gazette.

The Northeast Mississippi hospitals granted more charity care than the annual $2.3 million average for all Mississippi hospitals, but less than $5.2 million average nationally. However, Mississippi hospitals average 2.2 percent charity care compared to net patient revenue while Northeast Mississippi hospitals gave away 1.88 percent. Both exceeded the national average 1.85 percent of charity care compared to net patient revenue. Private, not-for-profit hospitals in Northeast Mississippi reported higher percentages of charity care than government-owned institutions.

At the regional and state level, Mississippi hospitals carry much higher loads of bad debt. Nationally, bad debt, the uncollected bills that are written off as losses, averages 10 percent compared to net patient revenues. In Mississippi, bad debt averaged 15 percent compared to net patient revenues, and 14 percent in Northeast Mississippi.

Read more: http://www.djournal.com/news/local/balancing-act-local-hospitals-juggle-charity-care-sustainability/article_6acf7db9-16bc-51f4-b6e5-908d6299f616.html

[Phoenix61]

1. I'm curious how they price charity care

Is it at the Medicare/Medicaid price for services or at the uninsured price for services?