Washington State 1999

Charity Care

In Washington

Hospitals


 

 

Page    Contents

 

Foreword

 

Executive Summary

 

Charity Care Policy for Washington Hospitals

 

Charity Care Defined

 

Measuring Hospitals’ Charitable Contributions to Their Communities

 

Charity Care in Washington Hospitals

 

Charity Care Projections for FY 2000

 

How Hospitals Project Charity Care

 

How Hospitals Verify Need for Charity Care

 

How Hospitals Notify the Public About Charity Care

The Future of Charity Care

Appendix 1:  Charity Care Dollars as a Percentage of Gross Patient Revenue and Adjusted Revenue

Appendix 2:  Rural Definition and Charity Care as a Percentage of Gross Patient Revenue and Adjusted Revenue for Rural Hospitals

Appendix 3:  Charity Care Provided or Projected: Actual FY 1999 and Estimated FY 2000

Appendix 4:  Charity Care Laws RCW 70.170.060 and Rules  WAC 246-451

Appendix 5:  2001 Federal Poverty Guidelines


Foreword

 

The 1989 Legislature enacted RCW 70.170.060, which prohibits any Washington hospital from denying access to emergency care based on inability to pay, or adopting admission policies which significantly reduce charity care.  The same legislation directs each hospital to develop a charity care policy.  The Department of Health (DOH) is responsible for rule-making and monitoring related to charity care, and is required to report to the Legislature and Governor on an annual basis.  This report presents data submitted by Washington hospitals in their fiscal year (FY) 1999 Hospital Year-end Report and 2000 Annual Budget Submittals.

 

            This report :

 

          Provides a source of data to assess the impact of uncompensated health care on hospital charges and continued access to health care in a community

 

          Is a resource document for persons wishing to conduct research or seek information on uncompensated health care.


 

Executive Summary

 

This report contains data regarding charity care provided by all licensed hospitals in Washington.  Charity care is reported as a percentage of total revenue and adjusted revenue.

 

RCW 70.170 defines charity care as “necessary inpatient and outpatient hospital health care rendered to indigent persons...”  A person is considered indigent if family income is at or below 200% of the federal poverty level.  Past hospital accounting practice did not consistently separate bad debt (often stemming from non-payment of bills by low income patients) from charity care.  As a result of recent improvements in charity care accounting required by law, this report utilizes only charity care rather than a combination of charity care and bad debts as in reports prior to 1995.

 

Washington hospitals provided $113 million in charity care for 1999, which is an  increase of 3.9% above 1998 and a 10.4% increase above the 1997 levels.  Charity care for 1999 was 1.19% of total hospital revenue and 2.19% of “adjusted revenue” (with Medicare and Medical Assistance Program payments deleted for comparisons focused on each hospital’s base of primarily private payments).  From 1989 until 1993, charity care steadily increased in total dollars and as a percent of revenue, while from 1994 through 1997, charity care steadily declined in both categories.  Total charity care for 1998 increased for the first time in five years.  This trend continued in 1999 with an increase above the 1998 level.

 

Nineteen hospitals each provided more than $2 million of charity care in FY 1999, which accounted for 76% of the statewide charity care.  Regionally, King County clearly provides the largest dollar amount of charity care, with Harborview Medical Center alone providing in excess of 23 percent of the statewide total.  Rural hospitals report less charity care, in proportion to their total adjusted revenue, than do urban hospitals.  Rural hospitals also have a higher proportion of revenue from Medicare and Medical Assistance (including Medicaid), resulting in a smaller base of private sector payers to which charity care costs could be shifted.


Charity Care Policy For Washington Hospitals

 

Since 1991 Washington hospitals have been required to maintain a charity care policy on file with the Department of Health, Center for Health Statistics.  Each policy includes the following information:

          A set of definitions describing terms the hospital uses in its charity care policy;

          The procedures the hospital uses to determine a patient’s ability to pay for health care services and to verify financial information submitted by the patient;

          A sliding fee schedule for individuals whose annual family income is between 100% and 200% of the federal poverty standard, adjusted for family size;

          Procedures used to inform the public about charity care available at that hospital.

 

In addition to the charity care policy, each hospital annually reports actual total charges for charity care, bad debt, and total uncompensated health care in its fiscal year (FY) within 120 days of the close of the fiscal year as part of the hospital’s year-end financial report.  Hospitals also provide estimated charity care 30 days prior to the start of their fiscal year in their annual budget submittal.  Two health maintenance organization (HMO - Group Health) hospitals are not included in this report since health care charges are prepaid through member subscriptions and therefore uncompensated health care is not incurred.  This report is based on data collected from the remaining 90 licensed Washington hospitals for fiscal year 1999.

 

Charity care data reported to the State did not include the number of patients granted uncompensated care.  Therefore, it is unknown whether the number of charity care cases is going up, down or remaining the same over time.  This number is required to better characterize the provision of charity care in Washington.  For that reason, the Department is currently requesting this information be reported along with charity care charges.  1999 data reported 56,138 charity care patients by 41 hospitals totaling $75.8 million in charity care.  This represents 67% of the total 1999 charity care provided.  Future reports will be able to compare this data as more hospitals report this information.

 

This report reflects mostly summary information, but additional data can be obtained from the Center’s Hospital and Patient Data Systems (HPDS) database.  The Center for Health Statistics maintains a file for public use of all financial information submitted by Washington hospitals, which goes beyond the issue of charity care.  The hospital financial database includes hospital utilization, revenues, and expenses.  This office also maintains a database containing patient discharge information.  Persons interested in obtaining more information should contact the Center by calling (360) 236-4200 regarding the availability and cost of specific data requests or copies of individual hospital reports.

Charity Care Defined

 

Charity care is defined in RCW 70.170.020 as necessary hospital health care rendered to indigent persons, to the extent that the persons are unable to pay for the care or pay the deductibles or co-insurance amounts required by a third-party payer.  A person in need of care is considered “indigent” if family income is at or below 200% of the federal poverty level.  Past hospital accounting practice did not consistently separate bad debt from charity care.  The basic distinction between bad debts and charity care in the health care setting can be made between uncollectible accounts arising from a patient’s unwillingness to pay (bad debt) and those arising from a patient’s inability to pay (charity care).

 

Effective March 1991, the Department of Health adopted accounting rules which provided uniform procedures, data requirements, and criteria for identifying patients receiving charity care.  These rules also provided a definition of residual bad debt.  These changes have resulted in more accurate and consistent reporting on the components of uncompensated care.  This report utilizes only charity care, rather than a combination of charity care and bad debts as in earlier reports (pre-1995).

 

Measuring Hospitals’ Charitable Contributions to Their Communities

 

Measuring what a hospital gives back to the community or comparing one hospital’s contribution with another is not an easy exercise.  Hospitals often support their communities through free or low-cost services, which are not easily quantifiable and are not included in their uncompensated health care totals reported to Department of Health.

 

Comparisons based solely on data included in this report can lead to misleading findings. A high level of charity care may just as easily reflect demographic conditions in a service area (income level, unemployment rate, etc.) as the charitable mission of a hospital.  Conversely, a low level may reflect a relative absence of need for charity care in a hospital’s service area, rather than a lack of commitment to serve the community.  Therefore, this report makes no value judgment of any individual hospital provision of charity care. In addition, the state has not established the “appropriate” amount of charity care that a hospital should provide.

 

A hospital can provide only so much uncompensated health care and remain a financially healthy institution. Ultimately, if enough charges are uncompensated, whether they are attributed to bad debt expense or to charity care, the facility will face operating losses.  Hospitals may attempt to recover uncompensated health care by shifting costs to other payers, subsidizing uncompensated charges with nonoperating revenue (e.g., parking lots, gifts shops, endowments), or increasing prices for hospital

services.  With the advent of managed care, these options are becoming less and less viable.

Charity Care in Washington Hospitals

 

Charity care increased from $108 million in FY 1998 to $113 million in FY 1999. This represents a 3.9 % increase in total charity care from 1998 to 1999.  Table 1 summarizes the statewide provision of charity care from 1997 through 1999.  This table also presents charity care as a percentage of total revenue (including Medicare and Medical Assistance) and adjusted revenue (without those government programs). The decline in the percentage of charity care offered by hospitals may be due in part to an improved economy.  With more people working, the ability to pay should be improved.


Table 1

Overview of Hospital Charity Care in Washington 1997-1999

 

 

Average

 

 

 

Percent Change

 

1997-99

1997

1998

1999

1997-99

1998-99

Charity Care

 

 

 

 

 

 

Total Dollars ($M)

$107.7

$102.0

$108.4

$112.6

10.4%

3.9%

Percent of Total Revenue

1.29%

1.37%

1.31%

1.19%

-13.1%

-9.2%

Percent of Adjusted Revenue

2.43%

2.63%

2.46%

2.19%

-16.7%

-11.0%

Source: Washington Department of Health Hospital Financial Data Year-end Reports FY  97-99


 

The hospital accounting concept of “adjusted revenue” subtracts Medicare and Medical Assistance (including Medicaid) charges from total patient care revenue to allow meaningful comparisons of hospital levels of charity care.  Medicare and Medicaid have specifically excluded participation in covering charity care from their prospectively-determined payment levels.  Since the payments that hospitals receive from Medicare and Medical Assistance do not cover charity care, the hospitals adjust their rates to recoup the charity care from their base of private purchasers and payers.  This private paying base differs widely among hospitals as a percentage of their business.  Therefore, the use of “adjusted revenue” allows for a comparison of hospital charity care as a percentage of this meaningful base of privately-sponsored patients.

 

A majority of the state’s charity care comes from relatively few hospitals.  Nineteen urban hospitals each reported $2 million or more, and together provided $85 million in charity care (approximately 76% of the charity care provided statewide) in FY 1999 (see Table 2).  The amount of charity care individual hospitals provided ranged from $0 to $26.6 million, which reflect differences in their size, types of services provided, provisions for charity care in their mission statements, and the characteristics of surrounding communities.

 


Table 2.  Washington hospitals that reported more than $2 million in charity care, FY 1999

Hospital

City

County

Charity Care

 

 

 

 

Harborview Medical Center

Seattle

King

 $26,579,184

University of Washington Medical Center

Seattle

King

5,992,168

Swedish Hospital  Medical Center

Seattle

King

5,289,850

Children’s Hospital and Regional Medical Center

Seattle

King

5,019,456

Providence Saint Peter Hospital

Olympia

Thurston

4,163,091

Deaconess Medical Center

Spokane

Spokane

4,162,516

Southwest Washington Medical Center

Vancouver

Clark

3,466,839

Valley Medical Center

Renton

King

3,149,462

Saint Joseph Hospital

Bellingham

Whatcom

3,025,167

Good Samaritan Hospital

Puyallup

Pierce

2,930,771

Sacred Heart Medical Center

Spokane

Spokane

2,844,895

Providence Seattle Medical Center

Seattle

King

2,803,267

Providence General Medical Center

Everett

Snohomish

2,644,260

Overlake Hospital Medical Center

Bellevue

King

2,638,327

Saint Joseph Medical Center

Tacoma

Pierce

2,455,305

Tacoma General Hospital

Tacoma

Pierce

2,154,110

Yakima Valley Memorial Hospital

Yakima

Yakima

2,115,758

Evergreen Hospital Medical Center

Kirkland

King

2,033,778

Northwest Hospital

Seattle

King

2,016,685

 

 

 

 

Total

 

 

$85,484,890

Source: FY 1999 Washington Department of Health Financial Data Year-end Reports


 

Appendix 1 lists each hospital’s charity care as dollar amounts and as percentages of its total gross patient revenue and adjusted revenue. Statewide charity care in FY 1999 averaged 2.19% of adjusted revenue (2.46% in FY 1998).

 

The three hospitals providing the most charity care as a percentage of gross patient revenue were:

 

          Harborview Medical Center - Seattle,  at 5.79%

          Children’s Hospital - Seattle, at 2.30%

          Good Samaritan Hospital - Puyallup, at 1.80%

 

The three hospitals providing the most charity care as a percentage of adjusted revenue were:

 

          Harborview Medical Center - Seattle, at 12.82%

          Lourdes Counseling Center - Richland, at 4.24%

          Yakima Valley Memorial Hospital - Yakima, at 3.95%

 

Three hospitals reported zero charity care in FY 1999.

 

Tables 3 and 4 group hospitals into five regions.  The 1999 proportions of charity care show wide variations among different areas of the state.  Four of the five regions are groups of 13 to 21 hospitals in contiguous counties.  The fifth region, King County, is the state’s largest population center and has a concentration of 18 hospitals.

 

Table 3

 

 

 

 

 

 

Charity Care By Region 1996-99

 

 

 

 

 

 

 

Charity Care as a % of Adj Rev

 

 

Hospital Region

1996

 

1997

1998

1999

 

 

 

King County

3.26%

2.97%

2.88%

2.44%

 

 

 

Puget Sound

2.77%

2.17%

1.82%

1.79%

 

 

 

Southwest Washington

3.39%

2.76%

2.36%

2.27%

 

 

 

Central Washington

3.25%

2.67%

2.48%

2.37%

 

 

 

Eastern Washington

3.30%

2.23%

2.20%

1.76%

 

 

 

Statewide

3.16%

2.63%

2.46%

2.19%

 

 

        Source: Washington Department of Health Hospital Financial Data Year-end Reports FY 96-99

 

 


 

Among these regions, King County clearly provides the largest dollar amount of charity care.  However, this picture changes dramatically when Harborview Medical Center’s $26.6 million in charity care (23.6% of the statewide total) is excluded.  Then charity care in King County drops from 2.44% of adjusted revenue to 1.51%.  It is also important to note that Harborview derives 55.0% of its revenue from Medicare and Medical Assistance, far more than the aggregate percent of other King County hospitals (37.0%) or the statewide percent (45.9%).  This comparison shows a very limited base for the cost-shifting of charity care at Harborview.

 


 

 

Table 4

 

 

 

 

 

 

 

Overview of Hospital Charity Care by Region in 1999  (All dollars in Millions)

 

 

 

 

          

  Medicare/

 

Charity Care

 

 

 

 

($M)

Medical

 

As Percent

 

 

 

Charity

Total

Assistance

Adjusted

Of Region's

 

 

 

Care

Revenue ($M)

Revenue

Revenue

Adj Rev

 

King County

 

 $61.3

$4,117.2 

 $1,605.1

 $2,512.1

2.44%

 

 As a % of State Total

 

54.4%

43.4%

36.8%

48.9%

 

 

Puget Sound

 

 $20.9

 $2,212.3

 $1,047.9

$1,164.3

1.79%

 

 (Less King County)

 

 

 

 

 

 

 

 As a % of State Total

 

18.6%

23.3%

24.0%

22.7%

 

 

Southwest Washington

 

 $11.0

 $1,030.4

 $546.3

 $484.1

2.27%

 

 As a % of State Total

 

9.8%

10.9%

12.5%

9.4%

 

 

Central Washington

 

 $8.7

 $844.6

 $477.9

 $366.7

2.37%

 

 As a % of State Total

 

7.7%

8.9%

11.0%

7.1%

 

 

Eastern Washington

 

 $10.7

 $1,290.7

 $681.9

 $608.8

1.76%

 

 As a % of State Total

 

9.5%

13.6%

15.6%

11.9%

 

 

State Total

 

 $112.6

 $9,495.2

 $4,359.2

 $5,136.0

2.19%

Source: FY 99 Washington Department of Health Hospital Financial Data Year-end Reports


 

Using definitions from DOH Office of Rural Health (Appendix 2), there were 44 hospitals which could be classified as rural in 1999.  Of these, 8 were in sparsely populated “Frontier” areas, 19 in “Remote Rural” areas,  and 17 in “Less Remote Rural ” areas.  Most rural hospitals are small; two-thirds have less than 45 set-up beds. Included in the Less Remote Rural category are five larger Medicare-designated rural referral hospitals which range in size from 107 to 222 set-up beds.

 

Rural hospitals reported total charity care of $9.9 million in 1997, $8.5 million in 1998, and $8.8 million in 1999.  Overall, rural hospitals have tended to provide less charity care than their urban counterparts and have also tended to be more dependent on Medicare and Medical Assistance discounted payments, as shown in Table 5.  For rural hospitals, charity care averaged 1.53 percent of adjusted revenue, while charity care for urban hospitals averaged 2.28 percent of adjusted revenue.

 

 


 

 

Table 5

 

 

 

 

 

 

 

1999 Rural Charity Care

 

 

 

 

 

 

 

 

 

Charity  Care

 

Medicare & Medical

 

 

 

 

 

% of Adjusted

 

Assistance as a %

 

 

 

 

 

Revenue

 

Total Revenue

 

 

 

Rural Hospitals (44)

 

1.5%

 

56.2%

 

 

 

     Frontier (8)

 

0.9%

 

59.2%

 

 

 

     Remote Rural (19)

 

1.3%

 

57.6%

 

 

 

     Less Remote Rural (17)

 

1.6%

 

55.7%

 

 

 

Urban (46)

 

2.3%

 

44.3%

 

 

 

All Hospitals (90)

 

2.2%

 

45.9%

 

 

  Definitions are from DOH Office of Rural Health (See Appendix 2)

 

 


 

 

For 1999, rural hospitals derived 56.2% of their total revenue from Medicare and Medical Assistance discounted payments.  This indicated a more limited base for shifting charity care charges to other payers in rural hospitals than in urban hospitals, which have 44.3% Medicare/Medical Assistance payments.

 

In 1999, charity care (Appendix 2) was less than one percent of total revenue for 37 of the 44 rural hospitals; of these 37, it was 0.5% or less for 27 hospitals.  In terms of adjusted revenue, charity care was less than 2% for 35 of the 44 hospitals; of these 35, it was 1% or less for 21 hospitals.  Two rural hospitals reported zero charity care.

 

Among the three categories of rural hospitals, Less Remote Rural hospitals provided the most charity care as a percentage of adjusted revenue during 1999, and Frontier hospitals the least.

 

 

Charity Care Projections for FY 2000

 

In accordance with state statute, hospitals submit a projected annual budget prior to the start of their fiscal year.  Included in their budget are projections for their anticipated total charges for charity care for the next fiscal year (FY 2000).  Overall, hospitals projected that charity care would increase 4.88 percent, or $5.6 million above the projected FY 1999 or 7.21 percent above the actual FY 1999 (see Table 6 below).  Hospital projections for charity care have been higher than actual experience over the past several years


 

Table 6. Summary data of actual and projected charges for charity care,

             Washington hospitals, FY 1997 through 2000

 

 

 

 

 

 

ALL HOSPITALS

1997

1998

1999

2000

Projected Charity

117,891,206

121,094,381

115,077,143

120,696,629

Percent Change

 

2.72%

-4.97%

4.88%

Actual Charity

102,008,794

108,371,473

112,574,686

 

Percent Change

 

6.24%

3.88%

 

Source: FY 1997-1999 Washington Department of Health Hospital Financial Data Year-end Reports

and  FY 1997-2000 Annual Budgets


 

 

How Hospitals Project Charity Care

 

Most hospitals’ FY 2000 projections were based on an analysis performed during their budget process. These analyses usually took into account the following factors:

 

          A hospital’s historical fiscal years and its most recent year-to-date total number of patients and patient charges;

          Planned price changes;

          Projected volume changes

          Known usage factors (including the area’s economy and demographics);

          Hospital budget constraints; and

          A hospital’s mission or statement to support the community.

 

How Hospitals Verify Need for Charity Care

 

Many hospitals state as part of their mission that they will serve the poor and underserved.  Hospitals usually restrict their uncompensated health care programs to individuals unable to access entitlement programs such as Medical Assistance, unable to pay for medical obligations, or to those with limited financial resources.

 

These individuals generally include the recently unemployed; those employed but without employer-provided health insurance; those whose health insurance requires significant deductibles or co-payments; single parents; those recently or currently experiencing a divorce; transients or those without a permanent address; students, as well as spouses and their dependents; retired persons not yet eligible for Medicare; and the elderly who have limited or no Medicare supplemental insurance coverage.

 

As a result of RCW 70.170.060(5) every hospital has a charity care policy on file with the Department of Health which states the hospital’s procedure to determine and verify the income information supplied by persons applying for uncompensated health care services.  The hospital’s charity care policy must be consistently and equitably applied so that no patient is denied uncompensated health care based upon race, creed, color, sex, national origin, sexual orientation, disability, age, or source of income.  Table 7 summarizes the steps that hospitals generally use to determine eligibility or verify applicant information.

 

Table 7: Summary of steps generally used by Washington hospitals to determine and verify applications  for charity care

 

1)         Hospital identifies any uninsured, underinsured, or self-pay patients.

2)                  Patient completes application/determination of eligibility form.

3)                  Patient completes financial statement that includes income, assets, and liabilities.  Patient supplies documentation of resources (e.g., w-2, pay stubs, tax forms), and outstanding obligations (e.g., bank statements, loan documents).

4)         Hospital considers federal poverty guidelines and family size.

5)         Hospital verifies third-party coverage, if indicated.

6)         Designated hospital staff person interviews patient to assess the patient’s ability to pay in full; ability to pay reasonable monthly installments; and qualification for charity care.    

7)         Hospital attempts to secure federal, state, or local funding, if appropriate.

8)         After the hospital makes an initial determination of insufficient funds, income, and health care benefits, the claim becomes eligible for final review, often by a committee composed of administrative, business office, social services and nursing staff.  Occasionally, hospital board members serve on these             committees.

How Hospitals Notify the Public About Charity Care

 

In general, hospitals provide information on charity care, as well as applications for assistance, at the time of registration, in their emergency rooms, and in fiscal services offices.  These applications may also be included in a patient’s admission packet or with itemized bills that are mailed to a patient after discharge from the hospital.  Additionally, hospitals provide applications for assistance upon a patient’s request.  Many hospitals publish brochures or pamphlets describing the availability of charity care and identifying the criteria for qualification.  Some hospitals offer individual counseling at the time of pre-admission or during the collection process and determine an individual’s lack of financial resources.  Signs may be posted both in English and other languages commonly used in the hospital’s service area, explaining available charity care services.  These signs are usually located in the admitting and emergency entrance areas of the hospital. Hospitals also publish annual notices in local or area newspapers describing charity care programs

 

The Future of Charity Care

 

From the beginning, hospitals have included service to the poor and underserved as part of their mission.  Ever since hospital rate setting was sunsetted in 1989, charity care expenditures grew steadily until 1993.  From 1993 until 1997, that growth stabilized and declined. Charity care increased in 1998 for the first time in five years.  Today, welfare reform, along with changes to Medicare and Medicaid entitlements and the continuing expansion of managed care organizations, are leading issues which may affect the future of charity care.  Although welfare reform may ultimately increase the number of ineligible clients, and thus increase the need for charity care, representatives from the Department of Social and Health Services have indicated that the number of Medicaid clients has not decreased and is not expected to vary in the next biennium.

 

Medicaid coverage for children has increased and the Basic Health Plan has enrolled more clients with a current enrollment of nearly 219,000 residents. There have also been changes in insurance policies aimed at providing guaranteed insurance portability and limitations on exclusions for pre-existing conditions.  These combined factors most certainly contributed to the 1994 to 1997 declines in the amount of charity care being provided.  However, to what degree and how this is true is not fully understood at this time.  The Department has had to rely on complaints from the public regarding charity care denials to ensure compliance with the charity care laws.  Beginning in 2000, the Hospital Licensing Division of DOH has agreed to include specific steps during the annual on-site licensing survey to support the charity care mandates.  These include the following:

 

1)                  Monitor each hospital for their compliance with RCW 70.170.060(3) regarding the required admissions policies, practices and transfer activities.

2)                  Verify that a hospital’s charity care policy required by both RCW 170.170.060(5) and WAC 246-453-070 is current and has been reported to the HPDS office.

3)                  Assure each hospital prominently displays a notice concerning the waiver/reduction of fees for persons meeting the WAC 246-453-020(2) criteria during the survey process.

4)                  Check to see that each hospital provides a written explanation of any waiver or reduction of fees provided when a person meets the criteria established in WAC 246-453-020(2).

5)                  Verify that each hospital requiring an application process for determining eligibility for charity care complies with WAC 246-453-020(5).

6)                  Substantiate that each hospital complies with WAC 246-453-060 regarding the provision of true emergency care.

7)                  During record review, examine medical charts of patients identified as charity care recipients to verify they have been dealt with appropriately.

 

This cooperation will greatly enhance the Department’s oversight and enforcement of the charity care requirements.

 

As not-for-profit hospitals operate more and more like for-profit businesses, the debate about whether they warrant their tax-exempt status continues at both the state and federal level. Do hospitals provide sufficient benefits, including charity care, to their community and state to offset the loss of potential tax revenue?  Private entities are also examining how charity care is being provided in their communities.  For example, a Community Benefits Inventory Project, working with a group of representatives from hospitals and other organizations in Seattle and Spokane, has defined “community benefits” as charity care and community services. The participants working on this project have identified three objectives:

           

            (1)        Provide reliable information to inspire and support collaborative community benefits activities among hospitals and delivery systems;

(2)        Provide credible information to support the tax-exempt status of non-profit hospitals and systems; and

(3)        Support public education activities aimed at reinforcing the image of hospitals and systems as community-oriented organizations

 

The Community Benefits Project Annual Report dated October 2000 stated the following based on 1998 data:

 

In total, the 32 participating hospitals provided an estimated $176.4 million in community benefits: $52.1 million in community services, $89.8million in charity care, and $34.5 million in Medicaid payment shortfalls. …while the hospitals in this report were exempt from paying $121.7 million in certain federal, state and local taxes, the taxes they did pay totaled over twice the amount - $279.4 million.

 

This information is beneficial in the review of charity care.  It  provides a much broader and possibly a truer picture of benefits provided by Washington hospitals. 

 

The Legislature has provided the following mandate for the Department in RCW 70.170.010(3):

 

... access to health care is among the state’s goals and the provision of such care should be among the purposes of health care providers and facilities.  Therefore, the legislature intends that charity care requirements and related enforcement provisions for hospitals be explicitly established.

 

 


 

 

 


Appendices


 


APPENDIX 1

 

 

Charity Care as a Percentage of

Gross Patient Revenue and

Adjusted Revenue

FY 1999

TOTAL REVENUE, ADJUSTED REVENUE,AND AMOUNT OF CHARITY CARE AS A PERCENT OF TOTAL REVENUE AND ADJUSTED 

REVENUE  FOR WASHINGTON HOSPITALS WITH FISCAL YEARS ENDING DURING CALENDAR YEAR 1999

 

 

 

 

REVENUE CATEGORIES (DOLLARS)

 

 

 

 

 

 

 

 

(LESS)

 

                CHARITY CARE

LIC

 

 

 

(LESS)

MEDICAL

 

 

 

 

#

 

 

TOTAL

MEDICARE

ASSISTANCE #

ADJUSTED

CHARITY

% of

% of

 

 

HOSPITAL \ REGION

REVENUE

REVENUE

REVENUE

REVENUE

CARE

TOT REV

ADJ REV

 

 

KING COUNTY

 

 

 

 

 

 

 

183

 

Auburn Regional Medical Center

88,899,256

29,582,325

7,624,171

51,692,760

894,248

1.01%

1.73%

904

 

BHC Fairfax Hospital

32,715,501

2,071,825

13,903,228

16,740,448

33,665

0.10%

0.20%

14

 

Children's Hospital & Regional Medical Center

218,596,635

3,804,365

74,134,773

140,657,497

5,019,456

2.30%

3.57%

35

 

Community Memorial Hospital

18,239,671

6,081,766

1,232,177

10,925,728

100,142

0.55%

0.92%

164

 

Evergreen Hospital Medical Center

171,157,960

57,540,876

9,398,031

104,219,053

2,033,778

1.19%

1.95%

29

 

Harborview Medical Center

459,326,689

96,582,648

155,483,221

207,260,820

26,579,184

5.79%

12.82%

126

 

Highline Community Hospital

130,025,007

35,066,151

15,640,216

79,318,640

1,986,067

1.53%

2.50%

130

 

Northwest Hospital

216,453,125

98,644,547

7,911,303

109,897,275

2,016,686

0.93%

1.84%

131

 

Overlake Hospital Medical Center

202,259,318

60,047,993

6,870,708

135,340,617

2,638,327

1.30%

1.95%

3

 

Providence Seattle Medical Center

247,464,626

117,310,222

24,523,655

105,630,749

2,803,267

1.13%

2.65%

202

 

Regional Hospital for Resp/Complex Care

12,548,261

6,827,938

986,778

4,733,545

36,326

0.29%

0.77%

201

 

Saint Francis Community Hospital

95,863,308

18,595,786

6,006,038

71,261,484

1,045,274

1.09%

1.47%

1

 

Swedish Hospital Medical Center

865,898,012

248,954,587

49,070,312

567,873,113

5,289,850

0.61%

0.93%

128

 

University of Washington Medical Center

416,982,709

121,678,977

62,621,397

232,682,335

5,992,168

1.44%

2.58%

155

 

Valley Medical Center - Renton

189,691,000

52,325,247

18,991,104

118,374,649

3,149,462

1.66%

2.66%

148

 

Vencor Hospital Seattle

25,684,296

15,464,288

433,278

9,786,730

0

0.00%

0.00%

10

 

Virginia Mason Medical Center

718,919,027

155,411,398

21,867,864

541,639,765

1,708,773

0.24%

0.32%

919

 

West Seattle Psychiatric Hospital

6,513,965

2,399,644

0

4,114,321

0

0.00%

0.00%

 

 

KING COUNTY TOTALS

4,117,238,366

1,128,390,583

476,698,254

2,512,149,529

61,326,673

1.49%

2.44%

 

 

 

 

 

 

 

 

 

 

 

 

PUGET SOUND REGION (Less King Co.)

 

 

 

 

 

 

 

73

 

Affiliated Health Services

130,883,934

54,235,427

12,385,297

64,263,210

519,917

0.40%

0.81%

106

 

Cascade Valley Hospital

32,337,035

5,458,796

2,222,986

24,655,253

287,332

0.89%

1.17%

54

 

Forks Community Hospital

11,195,802

2,839,716

2,381,514

5,974,572

146,443

1.31%

2.45%

81

 

Good Samaritan Hospital

162,717,815

56,336,720

15,818,069

90,563,026

2,930,771

1.80%

3.24%

142

 

Harrison Memorial Hospital

123,265,645

59,013,186

14,193,792

50,058,667

1,925,010

1.56%

3.85%

134

 

Island Hospital

50,242,711

16,281,112

3,746,419

30,215,180

153,068

0.30%

0.51%

85

 

Jefferson General Hospital

21,875,438

11,421,206

2,373,659

8,080,573

304,393

1.39%

3.77%

175

 

Mary Bridge Children's Health Center

59,931,576

0

24,620,186

35,311,390

624,141

1.04%

1.77%

38

 

Olympic Memorial Hospital

63,980,009

36,149,389

6,179,394

21,651,226

406,314

0.64%

1.88%

84

 

Providence General Medical Center

302,784,545

118,268,798

40,936,397

143,579,350

2,644,260

0.87%

1.84%

182

 

Puget Sound Hospital

44,260,310

13,660,713

12,169,405

18,430,192

377,115

0.85%

2.05%

132

 

Saint Clare Hospital

79,088,913

19,715,909

8,923,825

50,449,179

1,374,120

1.74%

2.72%

145

 

Saint Joseph Hospital - Bellingham

171,119,644

68,866,601

24,569,541

77,683,502

3,025,167

1.77%

3.89%

32

 

Saint Joseph Medical Center - Tacoma

321,614,639

94,318,842

24,572,741

202,723,056

2,455,305

0.76%

1.21%

138

 

Stevens Healthcare

133,140,328

29,036,512

12,110,381

91,993,435

1,305,118

0.98%

1.42%

176

 

Tacoma General Hospital

434,906,791

145,982,909

75,484,005

213,439,877

2,154,110

0.50%

1.01%

104

 

Valley General Hospital - Monroe

30,211,139

8,416,949

2,364,379

19,429,811

65,888

0.22%

0.34%

156

 

Whidbey General Hospital

38,698,355

20,510,314

2,360,062

15,827,979

164,813

0.43%

1.04%

 

 

PUGET SOUND REGION TOTALS

2,212,254,629

760,513,099

287,412,052

1,164,329,478

20,863,285

0.94%

1.79%

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHWEST WASHINGTON REGION

 

 

 

 

 

 

 

197

 

Capital Medical Center

88,594,511

33,617,031

6,129,815

48,847,665

26,601

0.03%

0.05%

63

 

Grays Harbor Community Hospital

83,729,871

40,167,310

11,789,662

31,772,899

350,114

0.42%

1.10%

8

 

Klickitat Valley Hospital

6,844,551

2,600,634

1,045,776

3,198,141

13,724

0.20%

0.43%

186

 

Mark Reed Hospital

3,732,295

1,212,562

771,497

1,748,236

19,753

0.53%

1.13%

152

 

Mason General Hospital

32,670,991

16,001,465

4,985,223

11,684,303

126,797

0.39%

1.09%

173

 

Morton General Hospital

9,008,161

2,265,892

2,250,318

4,491,951

0

0.00%

0.00%

79

 

Ocean Beach Hospital

10,307,999

5,071,306

970,166

4,266,527

14,784

0.14%

0.35%

26

 

PeaceHealth Saint John Medical Center

170,482,500

61,738,865

34,656,337

74,087,298

1,774,070

1.04%

2.39%

191

 

Providence Centralia Hospital

75,896,536

35,138,101

15,543,983

25,214,452

974,247

1.28%

3.86%

159

 

Providence Saint Peter Hospital

256,366,645

117,498,243

24,378,615

114,489,787

4,163,091

1.62%

3.64%

96

 

Skyline Hospital

8,516,840

3,146,207

1,876,585

3,494,048

44,310

0.52%

1.27%

170

 

Southwest Medical Center

276,205,347

95,510,323

22,737,762

157,957,262

3,466,839

1.26%

2.19%

56

 

Willapa Harbor Hospital

8,022,730

4,211,497

1,009,053

2,802,180

26,599

0.33%

0.95%

 

 

SOUTHWEST WASH REGION TOTALS

1,030,378,977

418,179,436

128,144,792

484,054,749

11,000,929

1.07%

2.27%

 

 

 

 

 

 

 

 

 

 

 

 

CENTRAL WASHINGTON REGION

 

 

 

 

 

 

 

158

 

Cascade Medical Center

18,783,818

8,254,207

967,755

9,561,856

7,135

0.04%

0.07%

168

 

Central Washington Hospital

100,211,923

47,085,423

13,717,218

39,409,282

1,162,265

1.16%

2.95%

45

 

Columbia Basin Hospital

6,923,355

1,818,075

2,224,520

2,880,760

10,383

0.15%

0.36%

150

 

Coulee Community Hospital

7,873,632

2,331,926

1,781,363

3,760,343

11,612

0.15%

0.31%

161

 

Kadlec Medical Center

101,435,432

36,688,620

12,956,010

51,790,802

1,428,732

1.41%

2.76%

39

 

Kennewick General Hospital

76,243,847

24,495,326

6,842,763

44,905,758

706,879

0.93%

1.57%

140

 

Kittitas Valley Hospital

23,059,692

9,913,943

2,392,750

10,752,999

217,509

0.94%

2.02%

165

 

Lake Chelan Community Hospital

8,570,684

3,271,374

1,502,570

3,796,740

36,849

0.43%

0.97%

915

 

Lourdes Counseling Center

14,444,462

2,225,522

6,951,274

5,267,666

223,113

1.54%

4.24%

22

 

Lourdes Medical Center

60,600,366

23,630,383

12,864,054

24,105,929

745,650

1.23%

3.09%

147

 

Mid Valley Hospital

17,208,716

6,130,458

3,892,092

7,186,166

48,596

0.28%

0.68%

107

 

North Valley Hospital

10,662,405

2,902,379

3,841,941

3,918,085

43,543

0.41%

1.11%

23

 

Okanogan-Douglas Hospital

9,139,492

3,492,014

1,564,774

4,082,704

80,000

0.88%

1.96%

46

 

Prosser Memorial Hospital

10,596,942

2,370,068

4,183,226

4,043,648

76,503

0.72%

1.89%

199

 

Providence Toppenish Hospital

23,862,104

5,051,758

10,545,118

8,265,228

247,509

1.04%

2.99%

102

 

Providence Yakima Medical Center

142,303,697

67,929,453

22,614,944

51,759,300

1,111,895

0.78%

2.15%

129

 

Quincy Valley Hospital

6,968,872

1,810,220

2,253,468

2,905,184

10,442

0.15%

0.36%

78

 

Samaritan Hospital

46,915,406

16,404,721

10,130,049

20,380,636

336,284

0.72%

1.65%

198

 

Sunnyside Community Hospital

31,174,179

8,975,495

7,840,715

14,357,969

69,934

0.22%

0.49%

58

 

Yakima Valley Memorial Hospital

127,599,145

45,179,319

28,893,924

53,525,902

2,115,758

1.66%

3.95%

 

 

CENTRAL WASH REGION TOTALS

844,578,169

319,960,684

157,960,528

366,656,957

8,690,591

1.03%

2.37%

 

 

 

 

 

 

 

 

 

 

 

 

EASTERN WASHINGTON REGION

 

 

 

 

 

 

 

141

 

Dayton General Hospital

3,247,645

1,831,268

304,626

1,111,751

9,809

0.30%

0.88%

37

 

Deaconess Medical Center

248,040,857

91,392,435

44,967,800

111,680,622

4,162,516

1.68%

3.73%

178

 

Deer Park Health Center & Hospital

5,455,807

1,935,684

1,301,661

2,218,462

67,781

1.24%

3.06%

111

 

East Adams Rural Hospital

3,654,106

1,918,180

435,354

1,300,572

5,195

0.14%

0.40%

167

 

Ferry County Memorial Hospital

4,355,665

1,234,477

1,124,965

1,996,223

10,124

0.23%

0.51%

82

 

Garfield County Memorial Hospital

2,167,006

743,081

435,045

988,880

0

0.00%

0.00%

139

 

Holy Family Hospital

125,063,698

54,850,288

18,990,529

51,222,881

819,180

0.66%

1.60%

137

 

Lincoln Hospital

9,579,632

3,534,918

2,818,591

3,226,123

18,428

0.19%

0.57%

193

 

Mount Carmel Hospital

21,760,854

9,503,826

3,257,663

8,999,365

142,029

0.65%

1.58%

21

 

Newport Community Hospital

10,721,302

3,610,158

3,654,727

3,456,417

105,090

0.98%

3.04%

80

 

Odesssa Memorial Hospital

2,538,969

703,383

337,014

1,498,572

7,238

0.29%

0.48%

125

 

Othello Community Hospital

10,375,996

1,956,296

3,953,856

4,465,844

115,514

1.11%

2.59%

172

 

Pullman Memorial Hospital

18,612,308

4,967,113

1,142,601

12,502,594

35,582

0.19%

0.28%

162

 

Sacred Heart Medical Center

534,747,628

190,260,812

77,351,431

267,135,385

2,844,895

0.53%

1.06%

194

 

Saint Joseph's Hospital of Chewelah

11,842,922

4,247,311

3,402,798

4,192,813

165,181

1.39%

3.94%

157

 

Saint Luke's Rehabilatation Institute

29,249,180

14,665,672

3,080,994

11,502,514

107,390

0.37%

0.93%

50

 

Saint Mary Medical Center

98,130,041

39,912,317

7,836,549

50,381,175

576,842

0.59%

1.14%

108

 

Tri-State Memorial Hospital

27,241,043

15,371,519

1,832,174

10,037,350

127,809

0.47%

1.27%

180

 

Valley Hospital and Medical Center

63,576,183

28,617,796

6,751,592

28,206,795

1,088,560

1.71%

3.86%

43

 

Walla Walla General Hospital

49,096,738

15,746,299

5,298,156

28,052,283

252,428

0.51%

0.90%

153

 

Whitman Community Hospital

11,256,933

5,708,335

940,966

4,607,632

33,931

0.30%

0.74%

 

 

 

 

 

 

 

 

 

 

 

 

EASTERN WASH REGION TOTALS

1,290,714,513

492,711,168

189,219,092

608,784,253

10,695,522

0.83%

1.76%

 

 

 

 

 

 

 

 

 

 

 

 

STATEWIDE TOTALS

9,495,164,654

3,119,754,970

1,239,434,718

5,135,974,966

112,577,000

1.19%

2.19%