Report Shows Hospitals Lose Money On Medicare, Medicaid

Nov 29, 2016

Madison, Wi.
Credit wikipedia.org

Hospitals reported losing more than $1 billion caring for patients in the Medicaid program and $1.6 billion on Medicare, according to the Wisconsin Hospital Association 2016 Community Impact Report.

WHA spokesperson Mary Kay Grasmick says Medicaid pays hospitals only about 65 percent of what it costs to care for this vulnerable, and often medically-complex, patient population.

Grasmick says hospitals reported losing more than $1 billion dollars caring for patients in the Medicaid program...

"....that's because Medicaid reimburses hospitals at less than what it costs them to provide the care. In addition, Medicare does not reimburse hospitals for the cost of the care they're providing. They reported they had lost about $1.6 billion on Medicare...."

Medicare reimburses hospitals at a rate that is about 78 percent of cost. She says Wisconsin hospitals spent $1.7 billion in 2015 to support programs and services that had a positive impact in the communities they serve...

"....free care to people unable to pay their bills, they sponsor free clinics, health improvement activities, free screenings, people with AODA issues, helping people who have chronic disease...."

Grasmick says education is key to future health care. Statewide, hospitals spent $177 million on graduate medical education for physicians and nearly $12 million on education and clinical experiences for nurses. She says hospitals absorbed a nearly $13 million loss operating nursing homes. There's a link to the report is here.