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)
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