What's at Stake
Providing the best health care possible in a safe, compassionate environment is a commitment every hospital makes to it's community. Hospitals are open 24 hours a day, seven days a week and are often the only source of health care for millions of Americans. We must keep our hospitals strong.
AMERICA’S HOSPITALS: PREPARED TO CARE
- Nearly 35 million people are admitted to the hospital each year.
- Hospitals treat more than 129 million people in their emergency departments (EDs) and provide care to 527 million other outpatients each year.
- Hospitals deliver over 3.7 million babies each year.
- In 2011, hospitals provided care to people in need at a cost of over $41 billion for which no payment was received.
- Hospitals screen and, if an emergent condition is found, stabilize every patient who comes through the ED.
CONTRIBUTION TO THE ECONOMY
- Hospitals employ 5.5 million people.
- Behind restaurants, hospitals are the second largest private sector employer.
- When also accounting for hospital purchases of goods and services from other businesses, hospitals support one of every 9 jobs in the U.S and more than $2.3 trillion dollars of economic activity.
- More than a quarter of hospitals lose money on operations.
- Hospital operating margins were 5.5% in 2011
- Cost per case rose only 2.1% in 2011, the lowest level since 1999.
PAYMENT FOR MEDICARE AND MEDICAID SERVICES
- Together Medicare and Medicaid represent 57% of care provided by hospitals.
- Medicare payment falls short of the cost of caring for Medicare patients.
ü Medicare pays only 91 cents for each dollar spent caring for Medicare patients.
ü 54% of hospitals are paid less than the costs of services provided to Medicare patients.
ü The Medicare funding shortfall for hospital care approaches $24 billion dollars.
- Medicaid payment falls short of the cost of caring for Medicaid patients.
ü Hospitals receive an average of 95 cents for each dollar spent caring for Medicaid patients.
ü 56% of hospitals are paid less than the costs of services to Medicaid patients.
ü The Medicaid funding shortfall for hospital care exceeds $6 billion dollars.
IMPACT OF MEDICARE AND MEDICAID CUTS ON PRIVATELY INSURED (COST SHIFTING)
When Medicare and Medicaid fail to cover their share of hospital costs, hospitals are forced to make cutbacks that affect the whole community and/or look to the privately insured to make up the difference.
In a 2008 study, the actuarial firm Milliman Inc. found that cost-shifting adds an estimated $1,512, or 10.6%, to the average premium for a family of four.
RAND found that growing Medicare and Medicaid shortfalls accounted for 12% of the increase in rates paid to hospitals by private insurers in California between 1997 and 2001.