In fact, the rating agency warned that the amount of debt affected by downgrades in 2000 may be on course to actually exceed the total amount of debt downgraded for 1999. A poor financial prognosis means it costs hospitals more to borrow and invest in the people, technology and infrastructure necessary to keep pace. At the same time, America's hospitals and health systems continue to serve as the nation's health care safety net caring for those who have nowhere else to go for care. Current estimates put the number of Americans who lack health insurance at about 44 million. That number is projected to continue to increase, soaring to 55 million by 2010.
Hospitals are America's safety net for caring for the uninsured, but at increasing costs.
Government support makes up only a small portion of costs for treating the uninsured. Our ability to take care of our patients and communities is being seriously challenged. But it's not just hospitals that are saying America's health care providers are facing a financial crisis outside experts confirm that we need a cost of caring adjustment. The commission recommended that Congress increase the inpatient prospective payment system update by between 3.5 percent and 4 percent - more than twice what is in current law. MedPAC's data analysis shows that nearly 35 percent of the nation's hospitals are operating in the red.