Charity care is down, but hospital debt is up
Here's the good news: Documented charity care in the state has significantly decreased now that more people are insured or receiving coverage through the
And those decreases in documentation have resulted in a reduction in the state budget for allocated funding.
The money part of the equation, however, isn't completely adding up for providers.
Health system and hospital officials say all of this has led to an increased burden on some hospitals, where so-called bad debt is piling up.
"Safety net hospitals are experiencing increased bad debt since the onset of the ACA,"
That had led to bad debt, a term describing costs for treatment that go unpaid by patients, lanni, who represents the safety net hospitals in the state, said the hospitals trying to do the most for those who previously did not have insurance are getting crushed.
"This has become an unintended consequence of the ACA and provides an additional hardship to safety net hospitals," she said.
"The Affordable Care Act was an attempt to give everyone an insurance card. It was not an attempt to give everybody real access to health care services," he said. "Those are very different things."
In essence, many say, there hasn't been cost savings as much as cost shifting.
One of the many changes in health care has been a push toward primary care and keeping individuals out of hospitals for long periods of time.
"Behavioral change is just as important as insurance coverage," Hopkins said. The announcement from Gov.
"Our health care system is fundamentally transforming, driven in large part by
Many charity care patients are typically undocumented immigrants who do not qualify for insurance or
Access has increased for preventative and primary care for those who qualify for subsidized insurance, but a costly hospital visit still is unaffordable.
Many low-cost plans come with high deductibles, and charity care and subsidized insurance income qualifications are roughly the same.
The question becomes, even if an individual has insurance, can they still qualify for charity care?
Probably not, said New Jersey Policy Perspective's
"It raises the issue, if it's not clear, what are the hospitals doing? It's scary," Castro said, adding he posed the same question to hospital groups after the first cuts to charity care last year.
Ianni said that, while there are both positives and negatives to the announcement, the focus of the charity care dollars on safety nets is a plus.
Another change to charity care this year has been to the redistribution formula - the removal of capped increases to allocations to hospitals. That change has benefited some hospitals, such as
Hackensack has been the fifth-largest provider of charity care, and has been absorbing losses of that magnitude every year, Pitman said.
A report from the state
But Barnabas also reported the largest decrease by a health system,
"Fifteen hospitals each reported above
"We want our patients to have adequate and affordable coverage and our hospitals to be financially stable," Ianni said.
Hopkins said nonprofit hospitals should have at least 4 to 6 percent profit margins in order to reinvest in their facilities, but one of three nonprofit hospitals is operating at less than that, with most operating at about 2 percent.
Ianni said that, while the documented charity care numbers warranted the cut in the state budget, the federal government is also slated to cut as much as 24 percent of
"The thing our state policymakers must remember is that charity care is funded with
Which means an even smaller pool of federal dollars for hospitals who are piling on bad debt.
"It all comes down to payer mix," Ianni said. "While suburban hospitals may provide care to


Breaking up the business
Association Between Insurance Status and Hospital Length of Stay Following Trauma
Advisor News
- Help women break through their retirement roadblocks
- Advisors await SEC decision on Vanguard fair fund distribution
- What to do when adult children become the client
- Judge rules insurers not liable for Newport Group’s AME Church pension lawsuit
- Why vacation homes are becoming a major blind spot for advisors
More Advisor NewsAnnuity News
- Legacy Marketing Group partners with Malibu Life USA for annuity launch
- Best’s Market Segment Report: Global Life/Annuity Reinsurers Remained Poised for Steady Growth
- When technology becomes easy to rent, what still separates life and annuity carriers?
- Legacy Marketing Group® and Malibu Life USA Announce Distribution Partnership for New Fixed Indexed Annuity Platform
- Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- How advisors can get clients to act sooner on life insurance
- AM Best Affirms Credit Ratings of Crum & Forster Insurance Group’s Members and Monitor Life Insurance Company of New York
- AM Best Affirms Credit Ratings of Life Insurance Company Centras Life JSC
- AM Best Withdraws Credit Ratings of New Providence Life Insurance Company
- When technology becomes easy to rent, what still separates life and annuity carriers?
More Life Insurance News