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The Business of Health Care Report
A Lone Star Mess: Texas Ranks No. 1 for Uninsured - November 2003

Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

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.

Doug Hawthorne

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