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The Business of Health Care Report
Today, I'd like to discuss
a recent U.S. Census Bureau report on uninsured Americans and its relevance to
North Texans. It came as no surprise to many
in health care that the number of uninsured Americans grew last year. When the
economy weakens, people lose jobs and often their health insurance. Still, the
numbers are sobering. More than 43 million people lacked health insurance in 2002,
an increase of 2.4 million from the year before. To put that into perspective, the
number of uninsured Americans is larger than the combined population of 24
states. Texas, by percentage, had the
largest number of uninsured residents in the survey at more than 24 percent - that's
nearly one in four of us! For North Texas hospitals, the
impact is felt in crowded emergency departments which, without other medical options,
become a safety net. For Texas Health Resources, providing care for those who can't
afford to pay and those whose insurance is inadequate rose from $164 million in 2000
to a projected $300 million in 2003 - $50 million more than budgeted. The charity care provided by THR
hospitals, combined with bad debt, is more than 7 percent of the company's gross
revenue. The numbers are even more dramatic at individual hospitals, especially Harris
Methodist Fort Worth Hospital, where charity care and bad debt equals almost 10 percent
of its gross revenue. Unfortunately, there's no light at
the end of the tunnel. Year after year hospitals see charity care costs rise. The state
is out of money. And, no help is in sight at the federal level, as calls for a national
health policy go unheeded. Recent changes in Medicaid eligibility and cuts in the Texas
CHIP program, which provides insurance for indigent children, are yet another setback.
As a result, thousands more Texans are expected to enter the ranks of the uninsured. So far, Texas hospitals have remained
afloat despite the rising uninsured. That won't always be the case, however, if the trend
continues. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO
Doug Hawthorne
with "The Business of Health Care Report" on NewsRadio 1080 KRLD. ©
2003 Texas Health Resources |