Uncompensated care plunges $265M at W.Va. hospitals: 5 things to know

Declines in uncompensated care have saved more than 24 West Virginia hospitals $265 million, according to a report from The Charleston Gazette-Mail.

The number was revealed in data from the West Virginia Health Care Authority compiled by West Virginians for Affordable Health Care.

Here are five things to know about the decline in uncompensated care.

1. The West Virginia hospitals saved more than $265 million last year through reductions in uncompensated care from 2013 to 2014, the data shows. Statewide, the cost of uncompensated care dropped by nearly 40 percent.

2. As far as individual hospitals, here is a random sampling of how much was saved at some of the more than 24 hospitals.

  • Charleston (W.Va.) Area Medical Center — $137 million in free care in 2013 to $72.6 million in charity care and bad debt in 2014.
  • Morgantown-based West Virginia University Hospitals — $94 million in free care in 2013 to $43 million in 2014, saving the system $51 million.
  • Bridgeport-based United Hospital Center saved $22.3 million between 2013 and 2014.
  • Cabell Huntington (W.Va.) Hospital saved $16.6 million between 2013 and 2014.
  • Martinsburg-based Berkeley Medical Center saved $15.5 million between 2013 and 2014.

3. The drop in uncompensated care is attributed to more West Virginians gaining health insurance under the Affordable Care Act. The state's uninsured rate has dropped from 17.6 percent in 2013 to 8.3 percent in the first half of 2015, according to the report, which cites Gallup. This means hospitals don't have to provide as much charity care to uninsured people and are now being reimbursed more from people who are covered by expanded Medicaid, the report notes.

4. Perry Bryant, founder and former director of West Virginians for Affordable Health Care, called the savings a "once-in-a-lifetime moment for hospitals to make meaningful changes in the health outcomes of West Virginians." He added in the report, "If hospitals would direct a fraction of this windfall to fund community efforts, West Virginia could make major strides in reducing obesity, smoking and drug abuse."

5. But Renee Cross, the vice president of finance for South Charleston-based Thomas Health System, said in the report that Medicaid reimburses for care, but unlike charity care and bad debts, it still costs more to care for patients than the program reimburses. "In fiscal year 2014, Thomas Health System lost almost $10 million on taking care of Medicaid patients," she added. "Annually, going forward, we estimate that we will continue to lose more than $8 million taking care of our Medicaid population. Thomas Health System has seen about a 30 percent decline in bad debt and charity care combined, but has seen more than a corresponding increase in Medicaid volume and write-offs. We have to continue focusing on providing quality, compassionate and cost-effective healthcare to all of our patients to ensure the continuation of our mission and ministry by excelling at providing the human touch in healthcare."

 

More articles on healthcare finance:

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For-profit hospital stock report: Week of Dec. 28-31
In Va., patient satisfaction scores rise as reimbursement rates diminish

 

 

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