Tag Archives: hospital profits

Minnesota Hospitals Reduce Charity Care, Increase Profits

30 Sep

Mat Keller headshot

By Mathew Keller RN JD, Regulatory and Policy Nursing Specialist

We all knew big insurers would benefit as more individuals sign up for health insurance under the provisions of the Affordable Care Act. What is surprising to me, at least, is just how much Minnesota hospitals are profiting as well.

In the latest sign of sickness in the corporate healthcare world, the Minnesota Department of Health reports that our hospitals have reduced the amount of charity care they provide to our sickest and poorest citizens by 22.4 percent.

Much of this decrease is driven by a sharp increase in the number of patients with health insurance across the state — up to 94.1 percent, an all-time high.

Hospitals, as they reduce their charitable care, should pass those cost savings on to their patients and communities. They should allow more patients to qualify for charitable care. They should increase the quality of care they provide through appropriate nurse staffing. They should engage their communities in public health outreach.

Instead, our non-profit hospitals are pocketing the money, giving it out as bonuses, spending it on advertising and branding, building the latest and greatest waterfall in the lobby. Enough is enough.

Charitable care forms the backbone of our societal contract with our non-profit hospitals — we grant them tax exemptions, and in return, we expect that they will strive to help the sickest and poorest among us in a charitable manner. It might be time to re-examine that contract.

 

Minnesota hospitals’ income soars

18 Sep

Mat Keller headshot

By Mathew Keller RN JD, Regulatory and Policy Nursing Specialist

In yet another sign that Minnesota Hospitals are using the myth of a Minnesota “nursing shortage” in order to avoid appropriate nurse staffing, the Star Tribune recently reported that our 10 largest hospital systems “saw operating income jump by 38 percent in fiscal 2014 compared with the previous year.”

These healthcare systems reported sparking income growth by “putting the brakes on hiring.”

In particular, North Memorial Medical Center saw its highest net profit margin since 2006 (and yet is currently laying off RNs); the Mayo system reported a 1 percent decline in salary and benefit costs while experiencing a 36 percent increase in revenue (complaining of a nursing shortage and cutting pensions the whole time); Sanford reported eliminating positions through attrition (while also reportedly purposefully staffing 10 percent under grid in order to cut costs); and HCMC, a 472-bed facility, added the equivalent of only 38 full-time positions.

Meanwhile, nurses continue to report unsafe nurse staffing in record numbers.

Since August of last year, MNA nurses have submitted 2,802 Concern for Safe Staffing forms, indicating situations in which staffing is so bad patient safety is at risk.

Minnesota Hospitals: bragging about enormous jumps in profit obtained through unsafe staffing all the while jeopardizing the safety of our patients.

The time for a Safe Patient Standard law is now.