Hospitals

Ohio hospitals’ benefit to communities: $2.6 billion

During this season of giving, Ohio hospitals are releasing a report detailing the record amount of charity care and other benefits they provide to their local communities, extending $2.6 billion in free or discounted services to some of the state’s most vulnerable residents.

The 2010 Ohio Hospital Association (OHA) community benefit report showcases the many compelling contributions hospitals make within and outside their walls. The report, which includes stories of how caregivers go beyond expectations, is available online only for the first time at www.ohanet.org/Community-Benefits/ .

During this season of giving, Ohio hospitals are releasing a report detailing the record amount of charity care and other benefits they provide to their local communities, extending $2.6 billion in free or discounted services to some of the state’s most vulnerable residents.

The 2010 Ohio Hospital Association (OHA) community benefit report showcases the many compelling contributions hospitals make within and outside their walls. The report, which includes stories of how caregivers go beyond expectations, is available online only for the first time at www.ohanet.org/Community-Benefits/ .

The $2.6 billion in hospitals’ annual community benefits includes:

  • $999.1 million in charity care
  • $1 billion in Medicaid subsidization
  • $1.2 billion in community benefit activities

Charity care is care provided for free or at a substantial discount to those unable to pay. Over half of the free care provided by hospitals – $511.4 million – is provided to patients with incomes above the federal poverty limit. Charity care increased by 12 percent from 2007 to 2008.

The $1 billion in Medicaid losses covers the difference between what Medicaid pays for services and the actual cost hospitals incurred. Medicaid losses recorded a 20 percent hike over the previous year, when hospitals spent $835.7 million to cover the Medicaid shortfall.

The $1.2 billion in community activities includes medical services provided at no-cost or low-cost to patients, educational programs to improve health, research to find new cures and better medical treatments and education for new generations of physicians, nurses and other medical professionals.

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Ohio hospitals are helping bolster Ohio’s fragile economy as well:

  • Hospitals pumped $67.8 billion into Ohio’s economy.

    Hospitals collectively provided jobs for 576,113 Ohioans either directly or indirectly in 2008.

    Not included in the official total of $2.6 billion, but a vital part of the total picture, are the financial contributions hospitals make to subsidize bad debt – a $655.3 million total – and Medicare losses – a $877.1 million shortfall. These elements are noted in the report but not as part of the community benefit total in accordance with Catholic Health Association guidelines, the nationally recognized standard on community benefit reporting. Medicare Disproportionate Share Hospital reimbursement and Hospital Care Assurance Program reimbursement were subtracted from the $3.2 billion combined total to equal the $2.6 billion in total net community benefit.

    OHA releases a statewide community benefit report annually. The 2010 report uses 2008 data, the most recent year for which data is available. This year, 185 hospitals participated in the report.

    OHA modeled its report on the Catholic Health Association’s A Guide for Planning and Reporting Community Benefit to obtain the hospital-reported information including: community activities, charity care, and Medicaid losses, as well as, Medicare losses and bad debt. Economic impact data was provided by the American Hospital Association.

    Facts about Ohio Hospitals’ Contributions

    • 350,000 people work in Ohio hospitals
    • 576,113 Ohioans had jobs directly or indirectly through hospitals in 2008
    • From 2000-2008, Ohio hospitals added 116,000 new jobs
    • Ohio hosts over 17 percent of all clinical trials conducted in the U.S. – 3,837 are active
    • Hospitals pumped $67.8 billion into Ohio’s economy in 2008
    • 34 million visits were made to Ohio hospitals in 2008
    • 6 million visits were made to Ohio hospital emergency rooms in 2008
    • 152,000 babies were born in an Ohio hospital in 2008
    • Hospitals’ Medicaid losses increased 20 percent between 2007 to 2008
    • Hospitals’ total community benefit increased 18 percent between 2007 and 2008
    • Hospitals’ charity care increased 12 percent between 2007 and 2008

      View additional facts, charts and sources
      View executive summary (pdf)

      Helping Ohio Hospitals is maintained on behalf of the Ohio Hospital Association (OHA). The OHA was established in 1915 and currently represents 166 hospitals and 18 health systems throughout Ohio. OHA is a membership-driven organization that provides proactive leadership to create an environment in which Ohio hospitals are successful in serving their communities. Visit OHA’s Web site. Follow OHA on Twitter. Become a Facebook fan of Helping Ohio Hospitals.