With No Health Care Bill, ER Hospitals Remain Insurer of Last Resort

Wednesday, February 10, 2010

While Democrats in Washington grapple to revive their healthcare reform plans, the nation’s hospitals and emergency rooms face an even greater struggle helping the uninsured who regularly show up at their doors. Legally obligated to treat anyone with a serious medical condition, hospitals are losing billions of dollars each year in unpaid bills because of the 49 million Americans who don’t have health insurance. In 2008, the write-off was $36 billion, and that figure is expected only to climb while the number of uninsured soars to 58 million by 2014.

 
Hospital systems like Park Nicollet Health Services near Minneapolis are hemorrhaging cash due to unpaid or underpaid expenses stemming from government programs. In 2007, it lost $29 million, and last year it was $43 million. When Medicaid and Medicare reimbursements (which are lower than actual costs) are factored in, Park Nicollet is facing a shortage of $120 million in 2010. Consequently, administrators have had to cut back services and lay off hundreds of employees.
-Noel Brinkerhoff
 
Bills Stalled, Hospitals Fear Rising Unpaid Care (by Reed Abelson, New York Times)

Comments

journey home 14 years ago
“Use Senate reconciliation and expand Medicare via the Senate’s buy-in provisions. The CBO has already signed off on this as a means of saving money. More importantly, if more Americans can do a buy-in with Medicare, it creates more cost control (because there’s a genuine “public option” competitor). It also helps to solve the problems of pre-existing conditions, because Medicare does not deny coverage on this basis. Allowing a Medicare buy-in to Americans under 65 would give people a genuine alternative to private insurance and thereby render the pre-existing question moot. It would also lower Medicare costs by expanding the risk pool of patients (the great bulk of medical expenses are accounted for by a small number of people, mostly the elderly, requiring very expensive treatment). And it would substantially enhance the global competitiveness of American corporations. After all, in what other country in the world is health care a marginal cost of production for business?” - Roosevelt Institute Marshall Auerback

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