The provision of uncompensated care is a significant problem in the healthcare industry. The American Hospital Association (AHA) estimated that aggregate uncompensated care expenses totaled $34 billion in 1997, representing almost 6 percent of U.S. acute-care hospitals' total gross revenue (AHA, 1999). In 1997, 43.4 million people were without health insurance. This figure represents about 16 percent of the population, an increase of more than one million from the previous year. Empirical evidence show that public hospitals bear a significant burden of uncompensated care provision while there appears to be little difference in the amount of uncompensated care provided by non-profit and for profit hospitals. This paper analyzes the determinants of hospital supply of uncompensated care using a panel data set of Georgia hospitals for the period 1985-1997. Georgia hospitals are of interest given the change in the distribution of hospital ownership during this period. Public hospitals decreased from 63% to 31% of all hospitals, while the share of non-profit hospitals increased from 15% to 45%. This reduction in the number of public hospitals could greatly reduce access to healthcare for the indigent and uninsured if ownership status is a major determinant of uncompensated care provision. This study use fixed effects regressions to capture unobserved group effects on ownership, size, location, and type of service provided. An understanding of the importance of the determinants of uncompensated care supply by hospitals is central to formulating public policy for care of the poor, uninsured and under-insured.
Learning Objectives: By the conclusion of the session, participants will be able to: 1. Identify the determinants of hospital uncompensated care provision. 2. Discuss public policy implications of hospital provision of uncompensated care
Keywords: Hospitals,
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.