How reluctant health systems can minimize charity care

Non-profit organizations are supposed to provide community benefit in exchange for not having to pay taxes, and as such, hospitals frequently provide charity care for the indigent. However, KFF Health News paints a picture of how some such organizations in Minnesota try to minimize their obligation when law and regulations are vague. For one, some hospitals or health systems seem to make it difficult to find information online about charity care. For another, "some hospitals give free care to patients with an annual household income of $47,000, while others cap it at about $15,000" -- which seems like a very low ceiling when an out-of-pocket maximum might be around $8,000 or a procedure might be "more than $19,000." Overall, the hospitals in the state spent about 0.8% off their operating budgets on charity care, about a third of the national average.

While the chief executive at one medical center is quick to point out that "many health insurers post billions in profits," the underlying cost of care is still a major issue. Diverting more and more of insurers' profits while not doing anything to address the cost of care seems to not be a winning strategy.