Hospital system’s “community benefits” at $137.1 million

Community Medical Centers provided nearly $137.1 million in uncompensated services to the medically underserved in fiscal year 2007-2008, equivalent to nearly 15% of its total expenses, according to the nonprofit hospital system’s annual community benefits report filed with the State of California.

Community has historically spent more on uncompensated community benefits than all other Fresno-area hospitals combined. And, some years, nearly double their combined total.

Community’s uncompensated community benefits of nearly $137.1 million, on a budget of nearly $1 billion, compares with nearly $118 million spent on community benefits in fiscal year 2006-2007.

The “community benefits” figure reflects services for which the hospital system is not paid or is underpaid. It does not include bad debt. The community benefits total for 2007-2008 includes:

• charity care, $18.4 million
• unpaid costs for Medi-Cal and Medicare services, $61.7 million
• uncompensated costs of the University of California, San Francisco-affiliated medical education program, $32 million
• unpaid costs under Community’s contract with Fresno County on the medically indigent services provider program (MISP), $24.8 million.

An example of community benefits: Neither government nor private insurers pays for providing translation services to Community’s multi-lingual patient population. Last year, the corporate-wide cost to Community for those uncompensated services was more than $700,000.

Community operates three acute-care hospitals, including the only combined burn and Level 1 trauma units between Los Angeles and Sacramento, and numerous other health facilities. It is the region’s largest private employer with 6,000 staff, along with 1,100 affiliated physicians and 900 volunteers. Community also serves as the region’s safety net, through its 1996 contract with Fresno County.

“It takes about $2.3 million a day to run all of Community’s operations,” said Tim A. Joslin, Community’s CEO. “So this $137 million is the equivalent of running our operations for more than two months a year and not being paid for the medical services provided.”
 
Community is rebounding from recent financial difficulties caused by unfunded or under-funded care. It reported a positive bottom line of $48.5 million for the fiscal year ending this past August.

As a condition for tax-exempt status, nonprofit hospitals such as Community are required by state law to report the uncompensated benefits they provide each year.

This story was reported by John G. Taylor. He can be reached at jtaylor@communitymedical.org.

Wednesday, January 07, 2009