Washington State 1999
Charity Care
In Washington
Hospitals
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Page Contents
Charity Care Policy
for Washington Hospitals
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
Appendix 1: Charity Care Dollars as a Percentage of
Gross Patient Revenue and Adjusted Revenue
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
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.
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 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 $113 million in FY 1999. This
represents a 3.9 % increase in total charity care from 1998 to 1999. Table 1 summarizes the statewide provision
of charity care from 1997 through 1999.
This table also presents charity care as a percentage of total revenue
(including Medicare and Medical Assistance) and adjusted revenue (without those
government programs). The decline in the percentage of charity care offered by
hospitals may be due in part to an improved economy. With more people working, the ability to pay should be improved.
Table 1
Overview of Hospital Charity Care in Washington 1997-1999
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Average |
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Percent
Change |
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1997-99 |
1997 |
1998 |
1999 |
1997-99 |
1998-99 |
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Charity Care |
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Total
Dollars ($M) |
$107.7 |
$102.0 |
$108.4 |
$112.6 |
10.4% |
3.9% |
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Percent
of Total Revenue |
1.29% |
1.37% |
1.31% |
1.19% |
-13.1% |
-9.2% |
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Percent
of Adjusted Revenue |
2.43% |
2.63% |
2.46% |
2.19% |
-16.7% |
-11.0% |
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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 |
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Hospital |
City |
County |
Charity Care |
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Harborview
Medical Center |
Seattle |
King |
$26,579,184 |
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University
of Washington Medical Center |
Seattle |
King |
5,992,168 |
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Swedish
Hospital Medical Center |
Seattle |
King |
5,289,850 |
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Children’s
Hospital and Regional Medical Center |
Seattle |
King |
5,019,456 |
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Providence
Saint Peter Hospital |
Olympia |
Thurston |
4,163,091 |
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Deaconess
Medical Center |
Spokane |
Spokane |
4,162,516 |
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Southwest
Washington Medical Center |
Vancouver |
Clark |
3,466,839 |
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Valley
Medical Center |
Renton |
King |
3,149,462 |
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Saint
Joseph Hospital |
Bellingham |
Whatcom |
3,025,167 |
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Good
Samaritan Hospital |
Puyallup |
Pierce |
2,930,771 |
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Sacred
Heart Medical Center |
Spokane |
Spokane |
2,844,895 |
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Providence
Seattle Medical Center |
Seattle |
King |
2,803,267 |
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Providence
General Medical Center |
Everett |
Snohomish |
2,644,260 |
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Overlake
Hospital Medical Center |
Bellevue |
King |
2,638,327 |
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Saint
Joseph Medical Center |
Tacoma |
Pierce |
2,455,305 |
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Tacoma
General Hospital |
Tacoma |
Pierce |
2,154,110 |
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Yakima
Valley Memorial Hospital |
Yakima |
Yakima |
2,115,758 |
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Evergreen
Hospital Medical Center |
Kirkland |
King |
2,033,778 |
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Northwest
Hospital |
Seattle |
King |
2,016,685 |
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Total |
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$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.
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Table 3 |
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Charity Care By Region 1996-99 |
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Charity
Care as a % of Adj Rev |
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Hospital Region |
1996 |
1997 |
1998 |
1999 |
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King
County |
3.26% |
2.97% |
2.88% |
2.44% |
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Puget
Sound |
2.77% |
2.17% |
1.82% |
1.79% |
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Southwest
Washington |
3.39% |
2.76% |
2.36% |
2.27% |
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Central
Washington |
3.25% |
2.67% |
2.48% |
2.37% |
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Eastern
Washington |
3.30% |
2.23% |
2.20% |
1.76% |
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Statewide |
3.16% |
2.63% |
2.46% |
2.19% |
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Source: Washington Department of
Health Hospital Financial Data Year-end Reports FY 96-99 |
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Among these regions, King
County clearly provides the largest dollar amount of charity care. However, this picture changes dramatically
when Harborview Medical Center’s $26.6 million in charity care (23.6% of the
statewide total) is excluded. Then
charity care in King County drops from 2.44% of adjusted revenue to 1.51%. It is also important to note that Harborview
derives 55.0% of its revenue from Medicare and Medical Assistance, far more
than the aggregate percent of other King County hospitals (37.0%) or the
statewide percent (45.9%). This
comparison shows a very limited base for the cost-shifting of charity care at
Harborview.
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Table 4 |
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Overview of Hospital Charity Care by
Region in 1999 (All dollars in
Millions) |
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Medicare/ |
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Charity
Care |
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($M) |
Medical |
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As Percent |
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Charity |
Total |
Assistance |
Adjusted |
Of
Region's |
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Care |
Revenue
($M) |
Revenue |
Revenue |
Adj Rev |
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King
County |
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$61.3 |
$4,117.2 |
$1,605.1 |
$2,512.1 |
2.44% |
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As a % of State Total |
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54.4% |
43.4% |
36.8% |
48.9% |
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Puget
Sound |
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$20.9 |
$2,212.3 |
$1,047.9 |
$1,164.3 |
1.79% |
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(Less King County) |
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As a % of State Total |
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18.6% |
23.3% |
24.0% |
22.7% |
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Southwest
Washington |
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$11.0 |
$1,030.4 |
$546.3 |
$484.1 |
2.27% |
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As a % of State Total |
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9.8% |
10.9% |
12.5% |
9.4% |
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Central
Washington |
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$8.7 |
$844.6 |
$477.9 |
$366.7 |
2.37% |
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As a % of State Total |
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7.7% |
8.9% |
11.0% |
7.1% |
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Eastern
Washington |
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$10.7 |
$1,290.7 |
$681.9 |
$608.8 |
1.76% |
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As a % of State Total |
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9.5% |
13.6% |
15.6% |
11.9% |
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State Total |
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$112.6 |
$9,495.2 |
$4,359.2 |
$5,136.0 |
2.19% |
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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.
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Table 5 |
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1999 Rural Charity Care |
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Charity Care |
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Medicare & Medical |
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% of Adjusted |
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Assistance as a % |
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Revenue |
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Total Revenue |
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Rural Hospitals
(44) |
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1.5% |
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56.2% |
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Frontier (8) |
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0.9% |
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59.2% |
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Remote Rural (19) |
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1.3% |
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57.6% |
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Less Remote Rural (17) |
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1.6% |
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55.7% |
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Urban (46) |
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2.3% |
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44.3% |
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All
Hospitals (90) |
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2.2% |
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45.9% |
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Definitions are from DOH Office of Rural Health (See
Appendix 2) |
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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,
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ALL HOSPITALS |
1997 |
1998 |
1999 |
2000 |
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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 |
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Percent
Change |
|
6.24% |
3.88% |
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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
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.
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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
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% |
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EASTERN WASH REGION TOTALS |
1,290,714,513 |
492,711,168 |
189,219,092 |
608,784,253 |
10,695,522 |
0.83% |
1.76% |
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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% |
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