Hospitals

Ohio hospitals’ benefit to communities reaches $2.9 billion

Ohio hospitals today released a report detailing the charity care and other benefits they provide to their local communities, extending $2.9 billion in free or discounted services to some of the state’s most vulnerable residents. The 2011 Ohio Hospital Association (OHA) community benefit report showcases the many compelling contributions hospitals make within and outside their […]

Ohio hospitals today released a report detailing the charity care and other benefits they provide to their local communities, extending $2.9 billion in free or discounted services to some of the state’s most vulnerable residents.

The 2011 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 at www.ohanet.org/Community-Benefits/. An executive summary and document with sources and charts are also available online.

The $2.9 billion in hospitals’ annual community benefits includes:

sponsored content

A Deep-dive Into Specialty Pharma

A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.

  • $1.1 billion in charity care
  • $1.1 billion in Medicaid subsidization
  • $1.3 billion in community benefit activities

Charity care is provided for free or at a substantial discount to those unable to pay. From 2008-2009 charity care increased by 9 percent — hitting more than $1 billion for the first time.

The $1.1 billion in Medicaid losses covers the difference between the amount Medicaid pays for services and the actual cost hospitals incurred. Medicaid losses recorded a 12 percent hike over the previous year.

The $1.3 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.

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

  • Hospitals pumped $72.8 billion into Ohio’s economy.
  • Hospitals collectively provided jobs for 607,671 Ohioans either directly or indirectly in 2009.

Not included in the official total of $2.9 billion, but a vital part of the total picture, are the financial contributions hospitals make to subsidize bad debt — a $625.4 million total — and Medicare losses — a $711.2 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 $4.3 billion combined total to equal the $2.9 billion in total net community benefit.

OHA releases a statewide community benefit report annually. The 2011 report uses 2009 data, the most recent year for which data is available. This year, 169 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

  • 352,526 people work in Ohio hospitals
  • 607,671 Ohioans had jobs directly or indirectly through hospitals in 2009
  • Hospitals pumped $72.8 billion into Ohio’s economy in 2009
  • 36 million visits were made to Ohio hospitals in 2009
  • 6 million visits were made to Ohio hospital emergency rooms in 2009
  • 148,800 babies were born in an Ohio hospital in 2009
  • Hospitals’ Medicaid losses increased 12 percent between 2008 to 2009
  • Hospitals’ total community benefit increased 11 percent between 2008 and 2009
  • Hospitals’ charity care increased 9 percent between 2008 and 2009

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.

This post appears through the MedCity Influencers program. Anyone can publish their perspective on business and innovation in healthcare on MedCity News through MedCity Influencers. Click here to find out how.

Topics