ASSISTING LOW-INCOME UNINSURED PATIENTS: A SURVEY …

ASSISTING LOW-INCOME UNINSURED PATIENTS:

A SURVEY OF CALIFORNIA HOSPITALS

ASSISTING LOW-INCOME UNINSURED PATIENTS:

A SURVEY OF CALIFORNIA HOSPITALS

HOSPITAL CHARITY CARE 1

INTRODUCTION

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BROKEN HEALTH CARE SYSTEM

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RIGID CHARITY CARE REQUIREMENTS

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COMMITMENT TO CHARITY CARE PRINCIPLES AND GUIDELINES

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HELPING HOSPITALS DEVELOP AND IMPLEMENT CHARITY CARE POLICIES

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SURVEY OF HOSPITALS

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SURVEY METHODOLOGY

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SUMMARY OF FINDINGS

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CONCLUSION

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VOLUNTARY PRINCIPLES AND GUIDELINES FOR

ASSISTING LOW-INCOME UNINSURED PATIENTS 2

PRINCIPLES AND GUIDELINES

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APPENDIX

SURVEY RESULTS

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HOSPITAL CHARITY CARE

INTRODUCTION

Every hour of every day, medical miracles occur in hospitals throughout California. Whether it's life-saving trauma care for the victim of a violent act or the joy of a precious newborn taking its first breath, hospitals are the cornerstones of our communities.

For the vast majority of Californians--the more than 80 percent who have some form of governmental or private health insurance coverage--the sophisticated technologies of a modern hospital are often taken for granted. But for a patient who is uninsured and at the lower end of the economic scale, what was once a miraculous occasion can turn into a financial quagmire.

A hospital's job--first and foremost--is to provide care to all patients. California hospitals fulfill this mission every day. Hospitals are the providers of health care, not the financiers. However, because we take our mission to serve seriously, California hospitals also are committed to assisting those patients who truly cannot afford the health care they need.

This report, as promised to the administration of Governor Arnold Schwarzenegger, the Legislature and other key policymakers, offers a quantitative insight into the recent efforts by California's hospital community to apply meaningful financial assistance policies to low-income uninsured patients.

BROKEN HEALTH CARE SYSTEM

A key element being overlooked in the public debate about hospital charity care is the underlying cause of the problem: a broken health care system that has left nearly 7 million people--one out of five Californians--with no health insurance. The unrelenting number of uninsured patients is the single biggest pressure point on hospitals, costing California hospitals more than $6.5 billion a year in uncompensated care.

This report offers quantitative insight into the efforts by California's hospital community to apply meaningful financial

assistance policies to low-income uninsured patients.

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RIGID CHARITY CARE REQUIREMENTS ARE NOT THE ANSWER

In the absence of a comprehensive health care coverage solution, some lawmakers over the past few years have attempted to shift the responsibility onto hospitals through rigid and excessive legislative proposals requiring charity care. With 56 percent of California hospitals currently operating in the red, it's clear this is not a real solution to the problem of who should pay for the health care of the uninsured. Legislative proposals requiring hospitals to provide charity care that far exceeds their ability to do so will only hamper access to care. Hospital charity care policies need to be flexible in order to meet the needs of the diverse communities they serve. As shown in this report, hospitals are adhering to the intent of providing appropriate levels of charity care for each community, without greatly diverting scarce resources.

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