Ohio hospitals released a report Tuesday outlining the $2.9 billion in free or discounted services they provide annually to their local communities, including to some of the state’s most vulnerable residents.
The 2011 Ohio Hospital Association (OHA) community benefit report detailed the charitable contributions made by 169 hospitals throughout the state:
- Medicaid losses - $1,131,390,268
- Charity care expenses - $1,090,702,587
- Community activity expenses - $1,349,265,091
- HCAP reimbursement - (minus) $350,700,000
- Medicaid DSH reimbursement - (minus) $294,100,406
Charity care is provided for free or at a substantial discount to those unable to pay. From 2008-2009 charity care increased by 9 percent – reaching more than $1 billion for the first time.
The $1.1 billion in Medicaid losses covers the difference between the amount Medicaid pays for services and the actual cost hospitals incurred. Medicaid losses increased 12 percent over the previous year.
“What it really means for Ohio is that patients who may not otherwise receive care and services are getting those,” said OHA spokesperson Tiffany Himmelreich.
The $1.3 billion in community activities includes medical services provided at no-cost or low-cost to patients, educational programs to improve health, research to find new cures and better medical treatments and education for new generations of physicians, nurses and other medical professionals.
“I think there are a lot of people who mistake the community benefit as entirely charity care," noted Himmelreich. "Part of what we are trying to do with this report is explain the full range of what hospitals are providing.”
Ohio hospitals also bolster Ohio’s economy, pumping $72.8 billion into Ohio’s economy and providing 607,671 jobs, the report found.
Not included in the official total of $2.9 billion, but an important part of the total picture, are the financial contributions hospitals made to subsidize bad debt ($625.4 million) and Medicare losses ($711.2 million). These elements are noted in the report but not as part of the community benefit total in accordance with Catholic Health Association guidelines, the nationally recognized standard on community benefit reporting.
OHA releases a statewide community benefit report annually. The 2011 report uses 2009 data, the most recent year for which data is available.