Half of hospitals reported that the price of offering charity care to sufferers represented 1.4% or much less of their working bills in 2020, although the charges fluctuate broadly from hospital to hospital, a brand new KFF evaluation finds.
Based mostly on a assessment of hospital price report knowledge, the evaluation finds some hospitals present little or no charity care (0.1% or much less of working bills at 8% of hospitals), whereas others present much more charity care (at the least 7% of working bills at 9% of hospitals).
The variation in charity care charges might mirror variations in particular person hospitals’ mission and enterprise practices; the necessity for charity care amongst their sufferers; and federal, state, and native insurance policies and rules.
The evaluation is a part of a brand new temporary that examines the function of hospital charity care packages in serving to sufferers who can not afford their care. The temporary solutions continuously requested questions, together with:
- How a lot charity care do hospitals present?
- Which sufferers are eligible for charity care?
- What are the necessities associated to charity look after nonprofit hospitals to obtain federal tax-exempt standing, and what further necessities do states impose on hospitals?
- How do Medicaid and Medicare assist hospitals afford charity care bills?
- How did the COVID-19 pandemic have an effect on charity care?
The temporary additionally discusses coverage proposals associated to hospital charity care packages, resembling creating or increasing necessities that hospitals present charity care to sufferers under a specified revenue threshold, introducing necessities to extend the uptake of charity care, and strengthening oversight and enforcement of current regulation. It’s a part of KFF’s increasing work inspecting the enterprise practices of hospitals and different suppliers and their affect on prices and affordability.