Wisconsin hospitals provided $918 million in uncompensated healthcare services to their patients in fiscal year 2015, a decrease of 29.8 percent from FY 2014, according to a new report from the Wisconsin Hospital Association.
The 149 hospitals included in the report provided $434.7 million in charity care and incurred $483.3 million in bad debt in FY 2015.
General medical surgical hospitals reported a 31.1 percent decrease in uncompensated care, while specialty facilities reported an increase of 19.1 percent.
Total uncompensated care declined to 1.9 percent of total gross patient revenue in FY 2015 from 3 percent the previous year.
The Wisconsin Hospital Association attributed the decline to the expansion of health insurance coverage under the federal health reform law. They also noted they’ve seen an increase in losses from Medicaid.
Wisconsin hospitals receive 65 percent of what it costs to provide care for patients enrolled through Medicaid, according to Brian Potter, WHA senior vice president. Losses increased to more than $1 billion in fiscal year 2015, up from $899 million the previous year.
Medicare losses also increased to more than $1.64 billion, an increase of $160 million from the previous year, according to Potter.
“As the population continues to age and new enrollees are added to the Medicare program, the impact of the underpayments will become more pronounced,” he said.
Potter also noted that hospitals reinvest in communities by working with community partners to address unmet health needs.
“Hospitals help create healthier communities, and ensure that people are able to participate fully in employment opportunities and care for their families,” he said in a statement. “Without the assistance of hospitals and health systems, services for this segment of our society would remain scarce and in many instances, local government entities would be responsible for meeting this need.”
Milwaukee hospitals accounted for about 26.2 percent, roughly $240.1 million, of overall uncompensated care in the state. Of the 149 hospitals in the report, 52 delivered more than $5 million in uncompensated care during FY 2015.
Hospitals provided uncompensated care to 1.6 million patients in FY 2015.
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