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Missouri Hospital Association lauds economic impact of state's hospitals

By Richard Pizzi

A report from the Missouri Hospital Association says the state's hospitals provided more than $1.8 billion in community benefit in 2007 – an increase of $200 million from the previous year.

More than $117 million of the increase was attributed to an increase in uncompensated care.

"Hospitals continue to provide an important safety net for health services in communities throughout the state," said Marc D. Smith, the MHA's president. "The 2007 data illustrate that even before the onset of the current hard economic times, hospitals were making significant investments in caring for the poor and providing health services for communities."

The report highlights nearly $13.4 billion in economic activity generated from Missouri hospitals' outlay of nearly $6.7 billion in salaries and benefits. Hospitals in Missouri invested nearly $1.3 billion in buildings, land and equipment in 2007.

The MHA claims that, when combined with salaries and benefits, Missouri communities benefited from more than $8 billion invested in facilities and employees by Missouri's hospitals and health systems.

Hospitals participating in the report voluntarily submitted benefit data for fiscal year 2007. Reported categories include uncompensated care information for both charity care and bad debt, the unpaid costs of Medicare beneficiaries – excluding losses resulting from HMO contractual arrangements – the unpaid costs of Medicaid beneficiaries, donations, health professionals' education and free medical clinics and services.

Using these measures, the statewide total of community benefit provided by hospitals in 2007 was $1.8 billion.

The Missouri Hospital Association is a not-for-profit association representing 153 Missouri hospitals.