Here are six takeaways:
1. Of the hospitals studied, only 12 percent made profits of more than $1,000 per discharged patient from insurer, government or patient payments.
2. Fifty-five percent of hospitals lost money from patient care, and nearly 33 percent made up to $1,000 per patient.
3. Nonprofits, including the Carle Foundation Hospital in Urbana, Ill., made the list of hospitals earning money from patient care. In January, an Illinois appeals court ruled a state law permitting hospitals to avoid taxes was unconstitutional. Carle Foundation Hospital made an appeal and the Illinois Supreme Court is expected to review the court’s decision.
4. When the Carle Foundation Hospital stopped paying $6.5 million a year in property taxes, the city of Urbana lost 11 percent of its assessed tax value, according to Urbana Mayor Laurel Prussing. A hospital spokesperson countered the hospital provided $25.8 million in charity care in 2013.
5. If states implement taxation for hospitals, those hospitals operating on relatively thin margins may have to decrease offered service, lay-off staff and delay equipment purchases or facility upgrades.
6. Health Affairs study authors said because hospital care comprises a large portion of U.S. healthcare spending, it is imperative to understand which hospitals make money and how public policy impacts them. For instance, hospitals affiliated with larger healthcare systems and who had less competition made more of a profit margin, disproving the notion consumers should be concerned about consolidation.
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