ROCHESTER — In the first full year after the charity care screening law was enacted in Minnesota, many nonprofit hospitals are stepping up their charity care efforts.
A recent analysis of tax documents from nine hospital systems revealed that seven of them increased their spending on charity care between 2023 and 2024. Notable names include CentraCare Health and Mayo Clinic.
Senator Liz Boldon, a key architect of the law, expressed optimism about this trend. “It’s great to see hospitals responding to the needs of their patients,” she said. The legislation requires nonprofit hospitals to screen patients for financial assistance before taking steps like sending unpaid bills to collections.
Historically, charity care spending had been on the decline, especially during the early years of this decade. Factors like the COVID-19 pandemic and changing Medicaid enrollment processes have contributed to shifts in spending. While some systems, including Allina Health, saw slight decreases, many are now reversing that trend.
However, expert Ge Bai from Johns Hopkins University cautions that it’s too soon to determine if the increase is solely due to the new law. “We need more time and data to draw firm conclusions,” Bai noted.
Hospitals like Olmsted Medical Center are proactively reaching out to patients to assess their eligibility for financial assistance. They reported a significant jump of around $237,000 in charity care spending for 2024.
Awareness plays a big role here. Essentia Health, for instance, has seen a sharp rise in charity care applications. While the number of recipients hasn’t gone up dramatically, more patients are aware of their options, leading to more applications.
Melanie Wilson, Essentia’s senior vice president for revenue services, highlighted that hospital costs are rising as well. Patients are utilizing more preventive care, adding to the overall expense.
Sanford Health has been ahead of the curve. Nick Olson, its CFO, shared that they’ve had a program in place for over a decade that proactively assesses uninsured patients for financial assistance.
Hennepin Healthcare has also reported a rise in low-income and uninsured patients, partly due to an increasing undocumented population. Their charity care expenses have ballooned, now making up over 4% of their total costs.
The Minnesota Hospital Association stresses that while charity care is critical, it can’t meet all the needs of uninsured patients. With looming cuts to Medicaid funding, the demand for charity care is expected to rise.
Looking ahead, Senator Boldon is committed to addressing healthcare costs. She and Representative Reyer recently pushed for a bill to help erase some medical debts, although it didn’t pass.
While these charity care efforts are significant, they’re just one piece of a larger puzzle. The recent Debt Fairness Act in Minnesota aims to further protect patients from medical debt, reflecting broader systemic challenges.
As healthcare continues to evolve, charity care remains a vital lifeline for many. It’s an ongoing conversation about how we can ensure everyone has access to the care they need, without the burden of overwhelming debt.
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