Hospital "Charity" Care Debate Heats Up Again

Over the last few years, many of our advocates have been closely following the ebb and flow of a running debate about the issue of charity care provided by non-profit hospitals in Illinois, especially in the Metropolitan Chicago area.

Critics complain that while non-profit hospitals enjoy significant tax benefits, they do not give enough back to the community in the form of charity care for uninsured and under insured patients. On the other hand, hospitals point out that they are already operating on thin margins while treating more and more needy patients as the economy slows further. Hospitals are also becoming much more proactive and effective in communicating the total benefits they bring to their communities rather than focusing on narrowly defined "charity" care figures.

Although the American Heart Association has not taken an official position on the specifics of the current debate, applying a broader perspective in order to accurately assess how hospitals benefit the rest of us, seems to make sense. We work with many hospitals throughout Illinois who generously contribute funding for heart and stroke research. Although such funding ultimately results in saved lives, reduced misery and reduced medical costs, "charity" care does not take such contributions into account.

After ebbing for a while, the debate recently entered another flow stage after Cook County Commissioner Roberto Maldonado introduced an ordinance which would penalize non-profit hospitals if the amount of charity care they provide is deemed insufficient.

In responding on behalf of their member hospitals, the Metropolitan Chicago Healthcare Council (MCHC is essentially the "hospital association" for the Chicago area) unveiled a brand new website which asks visitors to "Support your local hospital." The website features a short movie which, in my opinion, effectively communicates a big picture view of how hospitals benefit the community and asks visitors to sign an online petition to show their support.

I think that MCHC is moving in the right direction. Hospitals cannot afford to play defense on this issue any longer. Not unlike a political campaign, they have to proactively define themselves before their critics do. This issue will not be put to rest unless hospitals proactively campaign to define charity care in a way that reflects their reality.... (I know, easier said than done!)

Here is a link to the new MCHC-produced website: http://www.supportourhospitals.com/. Take a minute to visit the site and please let us know what you think by leaving us a comment on the blog about the movie and about your views on the issue overall. We look forward to hearing from you!

Posted by: Mark Peysakhovich (mep@heart.org)