Report shows $1.6B in statewide community benefit from hospitals

More than $157 million of the increase was attributed to an increasing amount of uncompensated care provided by the hospital. That need, according to MHA, reflects the urgent need to address the problem of uninsured Missourians.

“The sharp increase in uncompensated care at Missouri’s hospitals punctuates the need for attention to the state’s health insurance crisis,” said MHA President Marc D. Smith in a news release. “Hospitals are committed to serving their communities’ health needs. However, as the number of uninsured Missourians expands, the ability of hospitals to provide an adequate safety net will diminish.”

The report also highlights the significant economic impact of hospitals, including nearly $15.9 billion in economic activity generated from hospitals’ outlay of nearly $8.8 billion in salaries, benefits and capital investment.

“Hospitals continue to contribute significantly to the state’s health and well-being,” Smith said. “Missouri’s hospitals provide direct patient care and programs that improve individual and community health. They also provide a powerful economic engine for state and local economies.”

Gauging community benefit

Because each community has different needs, each hospital’s community benefit program is unique.

Hospitals participating in the report voluntarily submitted benefit data for fiscal year 2006. Reported categories include uncompensated care information for both charity care and bad debt, the unpaid costs of Medicare beneficiaries – excluding losses resulting from health-maintenance organization contractual arrangements, the unpaid costs of Medicaid beneficiaries, financial contributions, health professionals’ education, and free medical clinics and services.

Using these measures, the statewide total of community benefit provided by hospitals in 2006 was $1.6 billion.

Springfield alone had a community benefit of about $206 million from CoxHealth, Ozarks Community Hospital and St. John’s, according to the report.

The not-for-profit Missouri Hospital Association represents 150 Missouri hospitals.

In addition to representation and advocacy on behalf of its membership, the association offers continuing education programs on current health care topics and seeks to educate the public, as well as legislative representatives, about health care issues.

$206M in Community Benefit

While the Missouri Hospital Association reports that hospitals had a statewide community benefit of $1.6 billion in 2006, Springfield alone had a community benefit of roughly $206 million from the city’s three largest hospitals. (Data from Lakeland Regional Hospital was not reported).

Hospital Benefit

CoxHealth $110,780,658

St. John’s $87,150,241

Ozarks Community Hospital $8,088,739

Source: Missouri Hospital Association, www.focusonhospitals.com