Uncompensated Care Costs for WI Hospitals Grow to $1.2 Billion in 2011

[hue]

http://wisconsinbudgetproject.blogspot.com/2012/08/uncompensated-care-costs-for-wi.html

According to a new report by the Wisconsin Hospital Association, hospitals in our state provided $1.2 billion of uncompensated health care services to their patients in fiscal year 2011, either as charity care ($579.6 million) or as bad debt ($626.8 million). Total uncompensated health care increased by about $110 million, or 10.3%, compared to FY 2010.

Hospitals in Milwaukee County accounted for $357 million of the uncompensated care last year, or 29.6%. However, it’s a significant issue for hospitals all over the state. Among the 148 hospitals included in the report, 57 each delivered more than $5 million of uncompensated health care in FY 2011.

The large amount of uncompensated care helps illustrate the importance of improving access to quality insurance. BadgerCare has slowed the increase in uncompensated care costs compared to what it otherwise would have been during the long and deep economic downturn. That was especially apparent in FY 2010 when the amount of uncompensated care decreased a little, even as the economy was tanking and tens of thousands of Wisconsinites were losing their employer-sponsored insurance.

Based on my analysis of the new data, the substantial increase in uncompensated care in FY 2011 was primarily the result of the general increase in the cost of hospital services. That conclusion is based on a couple parts of the data. First, the number of patients (or patient days) in FY 2011 actually decreased compared to 2010. A less obvious indicator (but one that I think might be more important) is that even though there was an increase in the percentage of care that was uncompensated, the growth in that ratio only accounts for about a third of the 10% increase cited by the report.

[midnight]

1. So if I'm reading this correctly Badger care is helping prevent uncompensated care costs for

hospital care go up?