BY MICHAEL ARTHUR
Associate editor, The News Democrat
GEORGETOWN - How much does a hospital mean to a community? According to the Ohio Hospital Association's statewide community benefit report, the 166 community hospitals participating in the study provided more than $1.5 billion in benefit to the areas they serve over the course of a year.
The study, titled 'Building Healthy Communities,' is based on information from 2005, the most recent year for which data is available, and seeks to highlight contributions and impacts of hospitals in terms of finance.
Brown County Regional HealthCARE participated in the report and CEO Michael Patterson discussed the statewide findings, as well as BCRH's figures, at a meeting of the hospital Board of Trustees Wednesday, Aug. 22.
"This is our first community health benefit report," said Patterson.
Patterson explained the five major areas of expense undertaken by hospitals that combined to determine "Net Community Benefit." The five major areas include Medicaid losses, charity care, community activity expenses, Hospital Care Assurance Program reimbursements and Medicare Disproportunate Share Hospital reimbursements.
The study additionally considered bad debt and Medicare losses to arrive at a 'Total Service' figure.
The study ultimately found that by providing free or reduced-cost care, promoting health through education and community activities and participating in government programs that sometimes fall short of repaying the actual cost of care provided, hospitals offer significant co-contributions to the community as a whole.
Put simply, hospitals absorb financial losses that otherwise would have fallen to government assistance programs and/or to patients who cannot afford to pay.
While the state-wide study found the participating hospitals contributed $1,508,988,995 in Net Community Benefit and more than $2.2 billion in total service to Ohioans, Patterson pointed out that BCRH has made significant contributions of its own.
Patterson said the hospital provided $1,884,550 in Charity Care in 2005. Charity Care, he explained, includes services provided for free or at a substantial discount. Also in 2005, BCRH spent $304,251 in low and no cost community activities such as educational programs; sustained Medicaid losses (the difference between the cost of care and the amount of reimbursement) totaling $548,725; sustained $440,717 in Medicare losses; and lost more than $4.5 million in "Bad Debt" or unpaid bills for patients determined to have the ability to pay.
The economic impact of BCRH totals $20,687,366, Patterson said.
Dr. Doris Charles briefly discussed Medicare cuts hospitals are facing in January, and asked if groups like the OHA are lobbying on behalf of hospitals who are already losing substantial dollars through these types of programs.
"These (cuts) could be drastic," said Charles.
"They are drastic," said Patterson.
He said the OHA does lobby on the hospital's behalf and invited Dr. Charles and other board members and staff to let their elected representatives know about the concerns. Patterson said he and other hospital staff will be meeting State Senator Tom Neihaus Aug. 31. Neihaus sits on the state committee overseeing Medicaid services, Patterson said.
For more information on the Community Benefit Report, visit www.ohanet.org.
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