CINCINNATI – A study by the Greater Cincinnati Health Council reveals that Cincinnati hospitals provided more than $276 million in uncompensated care in 2008, a 15 percent increase over 2007 numbers.

The survey reports on uncompensated care at cost delivered at 26 Cincinnati-area hospitals. Health Council President Colleen O'Toole said the survey goes beyond county tax levy funds, other public assistance funds and contractual adjustments and represents a significant and sizable investment by hospitals to serving the community.

"This care that hospitals provide at no or reduced cost is a critical safety net for people who need hospital care but cannot afford to pay, especially in today's distressed economic environment," she said.

The study shows the 10 hospitals in Ohio's Hamilton County (which includes Cincinnati) provided $160,169,995 in uncompensated care in 2008, a nearly 13 percent jump over 2007. In neighboring Butler and Warren counties, four hospitals saw uncompensated care totals hit $38,149,121, a 28 percent increase over the previous 12 months.

Five acute-care hospitals in northern Kentucky, across the river from Cincinnati, also saw a rise in uncompensated care, from $42,790,266 in 2007 to $50,053,513 this past year. Seven additional hospitals in suburban and outlying areas of the region comprised the balance ($27,726,135) of the area's uncompensated care total in 2008.

"In this tough economic downturn, people struggle to pay for basic everyday needs such as housing, food and gas," said O'Toole. "This makes the safety net even more important for those with unexpected medical bills. Even those who may have partial insurance coverage are struggling."

According to the study, several factors are driving the increase in uncompensated care. They include:

• Expanded eligibility – hospital charity care policies now include income levels at a higher percentage above federal poverty levels. For example, while policies from hospital to hospital vary, a family of four with a household income of $80,000 would in some instances meet the requirements to receive discounted care.
• An increase in the number of people who are uninsured – approximately 11 percent to 15 percent of greater Cincinnati residents are uninsured.
• An increase in the number of those who are employed and have insurance but still face hospital costs beyond their means, including co-pays and deductibles.
• The $276,098,764 in uncompensated care covers a wide variety of hospital services for medically indigent patients, including emergency department care.

"The steep increases in free care are among the indicators that the current healthcare system is broken and in need of significant reform," O'Toole said.

According to Health Council data, in 2008 approximately half of the region's acute care hospitals reported operating losses. In addition, the operating margin (2007 median) for area acute care hospitals is 2.8 percent, compared to the national average of 4 percent for similar facilities.