The HC4 report pinpointed lagging hospital income, as well as the growth in uncompensated care, as the key factors in the hospitals deteriorating financial condition. The component amount of free care has increased nearly 150 percent over the last several years. The growing burden of uncompensated care isn t just a problem facing hospitals in the city, said McMeekin, whose health system primarily serves Delaware County residents. Hospitals throughout the region are feeling the impact. In 1998, one of every 11 children in the state were without health insurance.
Data also shows that the burden of hospital uncompensated care varies by location and services.
It is higher among urban and rural hospitals, and in children s and teaching hospitals. Services related to heart and lung disease, trauma, and mental health are more likely to have higher levels of uncompensated care. Other factors impacting hospital operating margins are reductions in Medicare and Medicaid reimbursement due to the Balanced Budget Act of 1997 and inordinate payment denials and delays by managed care companies in paying hospital claims.