Hospitals see decline in charity care costs

As health insurance coverage has expanded under the federal health law, hospitals in Minnesota have seen a significant decline in costs to cover free and discounted care.

The 10 largest hospital systems in the state last year spent about $236 million on what the industry calls charity care — a decline of $43 million, or 15 percent, from 2013, according to a Star Tribune analysis.

Some of the savings is being swallowed by patients with big deductibles who aren’t paying their medical bills, hospitals say, which the industry refers to as bad debt.

But it’s also starting to create room in budgets as hospitals are being pushed to develop more community programs and other health promotion efforts that could ultimately drive down the need for costly care.

Read more: http://www.startribune.com/hospitals-see-decline-in-charity-care-costs/390870531/