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

SERVICES

 
  • Over 35 million people are admitted to the hospital each year.
  • Hospitals treat nearly 127 million people in their emergency departments (EDs) and provide care to 515 million other outpatients each year.
  • Hospitals deliver 4 million babies each year.
  • In 2009, hospitals provided care to people in need at a cost of over $39 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 5.4 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 over $2.2 trillion dollars of economic activity.

 

FINANCES

 
  • Nearly one-third of hospitals lose money on operations.
  • Hospital operating margins were 4.4% in 2009, up from 2008 as hospitals held cost growth to the lowest level in nearly a decade.

 

PAYMENT FOR MEDICARE AND MEDICAID SERVICES


  • Together Medicare and Medicaid represent 56% of care provided by hospitals.
  • Medicare payment falls short of the cost of caring for Medicare patients.

ü      Medicare pays only 90 cents for each dollar spent caring for Medicare patients.

ü      60% of hospitals are paid less than the costs of services provided to Medicare patients.

ü      The Medicare funding shortfall for hospital care exceeds $25 billion dollars.

  • Medicaid payment falls short of the cost of caring for Medicaid patients.

ü      Hospitals receive an average of 89 cents for each dollar spent caring for Medicaid patients.

ü      70% of hospitals are paid less than the costs of services to Medicaid patients.

ü      The Medicaid funding shortfall for hospital care exceeds $11 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.

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