"Facility fees" originally meant to help struggling hospitals keep emergency room doors open 24 hours a day are now being applied to outpatient services and between 2017 and 2022, the fees cost Colorado patients and their insurers more than $13 billion, according to a new report mandated by Colorado lawmakers.
Priya Telang, communications manager for the Colorado Consumer Health Initiative, said the hidden fees are being piled onto health costs many cannot afford to pay.
"Patients are not going to seek care and health outcomes are going to be worse," Telang contended. "They are going to have to seek a higher level of more expensive care by avoiding those smaller, outpatient procedures."
Telang noted the state's critical access hospitals, which are more likely to experience financial struggles, are not responsible for the bulk of fees charged. The report showed 80% of fees went to 10 of the state's largest hospital groups. UC Health, which took in one-third of all fees, is urging lawmakers not to act on the report's findings. UC Heath said there was not enough time, data or participation from stakeholders for it to be reliable.
Telang noted facility fees, which are separate from fees charged for doctor care, have proliferated in recent years as hospitals consolidate and gain more marketplace power.
"As we see these huge hospital systems buying up smaller providers and expanding their reach, we're going to see more of these facility fees being charged, because they can," Telang asserted.
UC Health, which has $6 billion in reserves, has grown from owning five hospitals to 14 across Colorado in the past decade. Telang believes action at the state and federal level is needed to protect consumers.
"It's our lawmakers' duty to help their constituents not be saddled with immense medical debt that is crushing and they can't afford," Telang stressed.
Disclosure: The Colorado Consumer Health Initiative contributes to our fund for reporting on Consumer Issues, Health Issues, and Human Rights/Racial Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
A new report found New York hospitals are in a precarious financial state.
The New York State Hospitals Fiscal Survey Report showed statewide hospitals are projecting an operating budget margin of 0.0% percent. While it is a slight improvement, hospital administrators said it is still insufficient for hospitals to handle patient care.
Bea Grause, president of the Healthcare Association of New York State, said government reimbursements do not cover the costs of administering health care.
"Those reimbursements are fixed and do not change," Grause pointed out. "They grow a little bit year over year but they're not keeping up with the expense growth that all hospitals are experiencing."
She noted hospitals cannot raise their commercial expenses with the expectation it will make up the difference, arguing the best way to help hospitals is to close the gap on Medicare and Medicaid payments so they keep up with expense growth. Prescription drugs are the largest continuously increasing expense hospitals face since such prices run 83% above the rate of inflation.
Staffing issues are being exacerbated by New York hospital's fiscal challenges. The report found labor expenses have grown more than 36% since 2019. While it is the second year of declining contract labor expenditures, they are double what they were in 2019.
Grause emphasized not having sufficient staff can affect the services hospitals offer.
"If a hospital is going to have a dialysis unit, you need a nephrologist. You'd probably need more than one nephrologist," Grause observed. "But you also need specially trained nurses, you need the right equipment, you need all the medication, you need the IV solution and the peritoneal solution."
Another factor in hospitals' declining operating margins is insurer demands. The report showed some surveyed hospitals project insurers' actions will cut their 2024 operating revenues by 5% or more. Estimates showed it would result in $1.3 billion or more in lost revenue for the hospitals.
get more stories like this via email
More than half of North Carolina counties have fewer than four dentists per 10,000 people and a few counties have no dentists at all.
The North Carolina Dental Society Foundation is stepping up to meet those residents where they are, for essential dental services.
Dr. Amanda Stroud, dental director and chief dental officer for AppHealthCare and a member of the foundation board, said she sees the need firsthand. She explained the biggest barriers are lack of dental insurance, affordability and the ability to get timely appointments.
"It may be that someone has to wait six to nine months for a dental appointment when they may be having tooth pain," Stroud observed. "And it may be that once they get that appointment, that appointment's just for a planning process and not always something that can help treat the pain or manage the dental issues."
Stroud noted such challenges affect a significant number of people, particularly in rural parts of the state. So, the foundation supports programs like "Give Kids a Smile" and the "Missions of Mercy" clinics, to provide free oral health services.
Stroud emphasized the events are supported by fundraising efforts, like an annual golf challenge. Dentists from across the state volunteer to perform extractions, fillings and cleanings and sometimes offering lifesaving care.
"You can have a dental infection that becomes something that is a cause of death for the patient," Stroud pointed out. "And that's happened in the United States. And you don't want to think about that happening in the United States, but it has."
Sharon D'Costa, fund development and program director for the foundation, said the efforts so far have reached nearly 73,000 patients. Beyond direct care, she stressed they are helping to expand the dental workforce in the state.
"We're working with community colleges to kind of provide students with scholarships," D'Costa outlined. "We're also initiating new programs, we're incentivizing faculty to stay in their jobs as well as get new faculty to take on roles teaching dental assisting and dental hygiene students."
D'Costa added the foundation awards grants and recognizes public health efforts to improve access to dental care. She acknowledged it is challenging to mobilize volunteers and secure funding but strong community partnerships help the foundation improve its impact.
Disclosure: The North Carolina Dental Society contributes to our fund for reporting on Education, and Health Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Access to reduced-price medication is vital for many low-income rural Tennesseans and the clinics serving them are concerned about potential cuts to a program that helps with drug costs.
The 340B program allows safety-net providers, like community health centers, to purchase outpatient medications at discounted rates.
Emily Waitt Hise, policy and advocacy manager for the Tennessee Primary Care Association, said the savings are crucial.
"The 340B program allows health center patients to receive the care they need to attain their highest level of health," Waitt Hise asserted. "It ensures that all patients can receive the lifesaving medications they need to manage chronic conditions, like diabetes or high cholesterol."
She pointed out health centers are required to reinvest the savings from the program back into patient care, which helps them provide other services like pediatrics, behavioral and dental health and OB/GYN care. Health centers are concerned that the 340B program will be on the chopping block under the new administration.
Laura Harris, CEO of Chota Community Health Services, said the 340B program offers significant cost savings, which are passed on to low-income and uninsured patients. She noted the costs vary by drug but are generally minimal. Her organization did a recent patient survey, confirming the cost savings.
"This third patient said, 'Eliquis was going to cost me $500, because my insurance denied it. With the program, it only cost $50,'" Harris reported. "A fourth patient said, 'My inhaler was over $100, but I got it for $25.'"
Harris argued the biggest challenge with the program is the pharmaceutical manufacturers' contract pharmacy restrictions, which limit 340B pricing to one pharmacy. She added it forces patients on multiple medications to visit different pharmacies to fill their prescriptions, which is challenging in rural areas.
Disclosure: The Tennessee Primary Care Association contributes to our fund for reporting on Health Issues, Mental Health, and Reproductive Health. If you would like to help support news in the public interest,
click here.
get more stories like this via email