DBJ... Ohio hospitals gave away $2.6B in services

From the Dayton Business Journal…

Report: Ohio hospitals gave away $2.6B in services

Thursday, December 16, 2010

Ohio hospitals provided $2.6 billion in free or discounted services in 2008, an 18 percent increase from 2007.

The increase, according to the latest Ohio Hospital Association’s community benefit report, included $999 million in charity care, $1 billion in Medicaid subsidization and $1.2 billion in other community benefit activities.

Medicare Disproportionate Share Hospital reimbursement and Hospital Care Assurance Program reimbursement were subtracted from the $3.2 billion combined total to equal the $2.6 billion in total net community benefit.

According to the report, charity care alone, provided for free or at a discount to those unable to pay, increased by 12 percent from 2007 to 2008.

Medicaid losses recorded a 20 percent hike over the previous year, when hospitals spent $835.7 million to cover Medicaid shortfalls. Medicaid losses cover the difference between what Medicaid pays for services and the actual cost hospitals incurred.

The $1.2 billion in community activities includes medical services provided at no cost or low cost to patients, along with educational programs and research.

The report included 185 hospitals.

Hospitals pumped $67.8 billion into Ohio’s economy, according to the report. And they provided jobs for 576,113 Ohioans either directly or indirectly in 2008.

Not included in the report’s community benefit figure was bad debt, which totaled $655.3 million, and Medicare losses, which were $877.1 million.

Dayton-area hospitals have a $6.8 billion impact on the local economy, according to a report earlier this year from the Greater Dayton Area Hospital Association.