JEFFERSON CITY, Mo. — A new report from the Missouri Hospital Association found the state’s hospitals provided more than $1.6 billion in community benefit in 2006 — an increase of $500 million from last year’s report. More than $157 million of the increase was attributed to hospitals’ increased provision of uncompensated care, which is a reflection of the urgent need to address the problem of the state’s uninsured.
“The sharp increase in uncompensated care at Missouri’s hospitals punctuates the need for attention to the state’s health insurance crisis,” said Marc D. Smith, MHA president. “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.”
Missouri’s hospitals are as diverse as the communities they serve. 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 HMO 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.
Hospitals also benefit the economies of the communities they serve. According to the analysis, hospitals’ statewide direct contribution of nearly $8.8 billion in salaries, benefits, taxes and capital investments generated a total of nearly $15.9 billion in total economic impact throughout Missouri’s economy. The 2008 economic impact estimate reports an additional $1.8 billion in economic activity from last year’s report.
The community investment report is available on MHA’s consumer Web site at www.focusonhospitals.com. At the site, consumers also may access hospitals’ quality of care reports and use the site’s treatment cost estimator to assess potential out-of-pocket costs for health care services and treatments.
The Missouri Hospital Association is a not-for-profit association in Jefferson City that 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.
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