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:1/17/2017)... ... January 17, 2017 , ... Seceon , ... threats in real-time, today announced a strategic partnership with TechLab Security, ... other Seceon partners, TechLab Security has become a strategic partner and a value ...
(Date:1/17/2017)... (PRWEB) , ... January 17, 2017 , ... ... families from two offices in Tyler, has announced the latest beneficiary of their ... Wish Network, a nonprofit organization dedicated to fulfilling the dreams of terminally ill ...
(Date:1/17/2017)... ... ... Year’s resolutions or renew their commitment to better health with the start of a new ... kick off 2017 with better smiles. Dr. Mondavi is offering several promotions for the New ... , A new patient package for just $49, which can help new ...
(Date:1/17/2017)... NJ (PRWEB) , ... January 17, 2017 , ... ... Learning Center and the Montclair State University’s Athletic Training Education program forged a ... University’s Athletic Training Education Program, which is consists of both student members ...
(Date:1/16/2017)... (PRWEB) , ... January 17, 2017 , ... Recently, patients ... in Southwest Michigan, joined other volunteers and organizations in support of the annual Binder ... children and families dressed up in colorful costumes of all designs coming out to ...
Breaking Medicine News(10 mins):
(Date:1/17/2017)... Jan. 17, 2017  From the company that brought a full ... years ago, comes a new line of companion animal pet first ... leader in equine first aid, has developed two sizes of small ... , Inc. Featuring a small and a large ... and rodeo family, is not a newcomer to working with small ...
(Date:1/17/2017)... Jan 17, 2017 Research and Markets has ... Industry 2016-2020" report to their offering. ... The global fluoropolymer market in the ... period 2016-2020. Global Fluoropolymer Market in the Healthcare ... with inputs from industry experts. The report covers the market landscape ...
(Date:1/17/2017)... 2017 ReportsnReports.com adds "Anaphylaxis - Pipeline ... overview of the Anaphylaxis,s therapeutic pipeline with comprehensive information on ... various stages, therapeutics assessment by drug target, mechanism of action ... latest updates, and featured news and press releases. ... Complete report on ...
Breaking Medicine Technology: