Minnesota Hospitals Gave Away More Than $200M in Free Care in 2016
Minnesota hospitals provided $205.1 million in charity care to patients in 2016, according to a report released Wednesday by the Minnesota Hospital Association. That’s up nearly 19 percent from the $172.6 million in free care that the state’s hospitals provided in 2015.
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The MHA released the latest charity care figures in its 2017 Community Benefit Report. Charity care is care provided to patients with no expectation of payment.
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Bad-debt expenses also rose at the state’s hospitals in 2016 to $374.5 million. That’s up 3.1 percent from 2015, when bad debt totaled $363.2 million. Bad debt is the cost of providing care to patients for which payment was expected but not received.
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The combination of charity care and bad debt is called uncompensated care, which rose 8.2 percent to $579.6 million in 2016 from $535.9 million in 2015, according to the MHA’s figures. By comparison, nationally, hospitals’ uncompensated-care costs rose 7.3 percent to $38.3 billion in 2016 from $35.7 billion in 2015, according to a recent report from the American Hospital Association. The AHA does not break out charity care and bad debt in its uncompensated-care figures.
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In the Twin Cities metropolitan area, hospitals provided $129.2 million in charity care in 2016, or 63 percent of the total for the entire state. Free care here was up 39 percent from the $92.9 million provided in 2015.
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The MHA released is annual Community Benefit Report about a month after it released a separate report that said most hospitals in the state operated in the black in 2016 with some enjoying double-digit profit margins, as previously reported by Twin Cities Business.