Consumers Union's recent report analyzed the impact on charity care when 10 California hospitals switched from nonprofit to for-profit companies. The report found that as nonprofit hospitals turn into for-profit companies or merge with larger nonprofit chains, charity care services are placed at risk. SEIU's report documented a dramatic drop in spending on charity care by the state's largest hospital chain, Catholic Healthcare West, which is a nonprofit. While the scope of the two groups' reports differs, both reports found that legislative and regulatory action is needed to ensure that charity care does not further decline in California's hospitals. Enforcement, penalties, and oversight must also be enhanced so that the public and policy makers can properly scrutinize hospital consolidations and preserve the charity care health safety net.
Public hospitals are strapped.
SEIU represents thousands of low-wage workers without health insurance who depend upon a strong safety net. In addition to the two reports and the legislative hearing, hospital charity care has been the focus of debate within the Los Angeles County Board of Supervisors. The Board is considering various proposals to deal with an increasing demand for care at the county's public hospitals.