Members of Congress, unhappy with the level of care nonprofit hospitals are giving the uninsured, may soon impose specific requirements for such care. Legislation could mandate that not-for-profits increase the level of care they extend to the uninsured as part of keeping their tax-free status.
Senator Charles Grassley, R-Iowa, chairman of the Senate Finance Committee, is studying the issue and has asked for feedback from groups representing nonprofit hospitals, including the Catholic Health Association and the American Hospital Association.
In meetings with committee staff, the CHA has proposed a series of definitions of community standards services which all hospitals could meet. The AHA has offered one possible solution: offering discount services to uninsured patients. However, some hospitals say current Medicare regulations prohibit discounts, so legislative remedies may be needed.
“Sen. Grassley is certainly open to the possibility of legislation to help improve care for the uninsured,” said Jill Gerber, press secretary to the Senate Finance Committee. But Gerber said that Grassley wanted to further “engage” with the hospital association and other interested groups before drafting up any specific bills.
Gerber said the AHA has contacted Grassley’s office and promised more proposals would be forthcoming. A request for comment made by this newspaper to the AHA went unanswered at press time.
Some experts point out that any requirement for greater care for the uninsured will have to be paid for by somebody, most likely by those with health insurance coverage and their care providers.
“The costs of free care for most health care organizations must be covered by surplus revenues generated from treating paying patients. A law saying that hospitals must provide more free care means that hospitals would have to increase charges for other patients,” said Bradford H. Gray, Ph.D., principal research associate at the D.C.-based Urban Institute.
Gray also points out that location plays a part in how much care nonprofit hospitals must grant to uninsured patients.
“Some hospitals are located in areas that have lots of uninsured people; others are located in areas with few,” he said. “Should the same standards apply?”
Have information about area nonprofits? Contact Frank Sietzen at [email protected].
