California hospitals are feeling the symptoms of an ailing economy as consumers find it harder to pay medical bills, more uninsured patients rely on emergency rooms and fewer people opt for elective care, according to a report released Wednesday by the California Hospital Association.
At UC Davis Medical Center, charity care is up 20 percent and appears to be rising, said Ann Madden Rice, the center's chief executive officer.
"We are seeing much of the same impacts in the report," Rice said. "We are seeing an increase in the number of people unable to pay for their medical care. I don't know how much of that is related to loss of jobs. That's certainly one possibility, but we haven't drilled down and tested that."
Charity care refers to service given to patients who have no way to pay because they lack health insurance, aren't enrolled in government medical assistance programs, don't have a regular income or can't afford the cost of service.
Statewide, hospitals report a 73 percent increase in consumers expressing hardship in paying out-of-pocket medical expenses, according to a November survey of chief financial officers at hospitals statewide.
The number of uninsured emergency room patients is up 33 percent, while elective procedures, often a lucrative area for hospitals, are down by 30 percent, the survey shows.
But area hospitals say they aren't noticing major fluctuations in the elective procedures. In fact, Sutter and UC Davis say they've seen a slight increase in such procedures.
Hospitals were asked to calculate their expense increases and other impacts from the start of the current economic crisis, CHA Vice President Jan Emerson said.
"From the regional perspective, the conditions certainly would mirror the report," said Scott Seamons, regional vice president for the Hospital Council of Northern and Central California, which encompasses hospitals from Merced to Nevada counties.
The report says hospitals must shoulder more of the cost in providing care to the state's elderly and poor. California hospitals say they typically provide $10.7 billion a year in unpaid and underpaid care, with $7.2 billion of that attributed to Medi-Cal and Medicare reimbursements falling short of what hospitals say are their customary costs.
"The growing number of uninsured patients, coupled with inadequate Medi-Cal payments and the ripple effects of the financial market crisis, is leading to a decline in the financial health of California's hospitals at the very time when demand for health care services is growing," said C. Duane Dauner, the statewide hospital association's president and chief executive officer.
The California survey echoes a report released in November by the American Hospital Association that warned about the challenges caused by the worsening economy.
Both reports noted the increasing difficulty in obtaining financing for major equipment purchases and construction.
Tight money means hospitals may have to rethink expansion plans. It's also straining hospitals' ability to comply with seismic-upgrade mandates; nearly 40 percent say they cannot meet key deadlines.
"When we look at the economy, there is no way to catch up," said Seamons of the regional hospital group.
Call The Bee's Bobby Caina Calvan, (916) 321-1067.
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