Navigation Links
Survival of safety-net hospitals at risk
Date:9/20/2012

UNIVERSITY PARK, Pa. -- Many public safety-net hospitals are likely to face increasing financial and competitive pressures stemming in part from the recent Supreme Court decision on the Affordable Care Act, according to researchers at Penn State and the Harvard School of Public Health.

"The issue for these hospitals going forward is that the Affordable Care Act promises to change how care for low-income and uninsured populations is funded, potentially reshaping the competitive landscape," said Jonathan Clark, assistant professor of health policy and administration, Penn State. "Our research suggests that adapting to these changes may be a struggle for some public safety-net hospitals." Safety-net hospitals provide a disproportionate share of charity and under-reimbursed care to uninsured and low-income populations. They often tailor their services to meet the special needs of these populations, and they frequently provide needed, but unprofitable, services, such as regional trauma and inpatient mental health services.

Working with Nancy Kane, professor of management and associate dean for educational programs, and Sara Singer, assistant professor, both at the Harvard School of Public Health, among others, Clark analyzed the financial performance and governance of 150 safety-net hospitals between 2003 and 2007. The team of researchers categorized the hospitals into governance types -- directly controlled public, delegated public authority, private non-profit and private for-profit. The team then analyzed the relationship between governance type and profitability.

"We found, counter-intuitively, that public hospitals directly controlled by governments, especially those in highly competitive markets, were more profitable than other safety-net hospitals," Clark said.

Seeking to better understand these findings, the research team chose two highly profitable hospitals and one less profitable hospital in each governance category and conducted site visits to gather more detailed information on the governance and financial strategies of safety-net hospitals. The additional data suggested that the successful public hospitals overlooked important governance and management practices and were financially healthy primarily because they were able to obtain substantial subsidies from state and local governments, such as property tax transfers or supplemental Medicaid payments, including disproportionate share (DSH) payments.

The results are published in a recent issue of Health Affairs.

"These findings are important because of the context in which we find ourselves," Clark said. "The economic downturn, slow recovery and politics of deficit reduction have eroded the ability of governments -- especially local governments -- to support the safety net. Couple that with the expected changes in safety-net funding from the Affordable Care Act and safety net hospitals, especially those that rely on direct public subsidies, face a new market dynamic. The question is whether and how they can adapt to this new reality. Our findings suggests that because many of these public hospitals lack the governance and management practices that have enabled private safety-net hospitals to thrive in the absence of subsidies, they will need to transform their organizations in order to sustain themselves financially."


'/>"/>

Contact: Sara LaJeunesse
SDL13@psu.edu
814-863-4325
Penn State
Source:Eurekalert

Related medicine news :

1. Vaccine yielded encouraging long-term survival rates in certain patients with NSCLC
2. Cancer Care Costs Higher in U.S. Than Europe, But Survival Longer
3. Adding drug to standard chemotherapy provides no survival benefit for older lung cancer patients
4. Hispanics Seem to Have Better Odds of Lung Cancer Survival
5. Equal access to care helps close survival gap for young African-American cancer patients
6. Heart Attack Survival Varies Widely Among Hospitals, Study Finds
7. Health Care Disparities Might Affect Black Kids Cancer Survival
8. Moffitt Cancer Center researchers identify drivers of sarcoma growth and survival
9. Screening for Other Health Problems May Aid COPD Survival
10. Living Near Major Roads May Shorten Heart Attack Survival
11. UC Irvine study finds racial, economic disparities in ovarian cancer care, survival
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/9/2016)... ... 2016 , ... MEDI+SIGN®, a provider of fully-automated patient monitoring ... for Emergency Departments (ED) has been added to their portfolio. Housed in a ... and with a simplified pallet of information available to the patient, the Digital ...
(Date:12/8/2016)... ... 2016 , ... The West Virginia Medical Institute (WVMI) announced ... name change aligns the entire company with its existing Quality Insights branded projects ... are very proud of the achievements associated with the West Virginia Medical Institute ...
(Date:12/8/2016)... ... December 08, 2016 , ... ... Company LLC, announced the first national #QuackGivesBack campaign which supported local breast ... was our first franchise-wide Quack Gives Back initiative, and we’re very ...
(Date:12/8/2016)... ... 08, 2016 , ... Mirixa Corporation , a leading ... pharmacist-delivered patient care services, has announced the promotions of Karen Litsinger to senior ... of sales. , Litsinger joined Mirixa in 2008 after serving as a ...
(Date:12/8/2016)... ... December 08, 2016 , ... David J. Dykeman , Ginger Pigott ... LLP, will speak at DeviceTalks West, Dec. 12, 2016, at the Fairmont Newport Beach ... from the firm’s global Life Sciences & Medical Technology Group have been featured speakers ...
Breaking Medicine News(10 mins):
(Date:12/9/2016)... , Dec. 9, 2016  Forge Therapeutics, Inc. ... (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) to ... for the treatment of bacterial infections including those ... recognized as an attractive antibacterial target for more ... of suitable chemical starting points has hampered its ...
(Date:12/8/2016)... , Dec. 8, 2016 Australia ... Summary GlobalData,s new report, "Australia Glaucoma Surgery ... data on the Australia Glaucoma Surgery Devices market. ... dollars, volume (in units) and average prices (USD) ... The report also provides company shares and distribution ...
(Date:12/8/2016)... -- Global Interventional Radiology Market: Scope and Methodology ... market analyzes the current and future prospects of ... summary, including a market snapshot that provides overall ... research is a combination of primary and secondary ... research efforts along with information collected from telephonic ...
Breaking Medicine Technology: