Wednesday, June 3, 2009

More bad news for non-profit hospitals

So, today there's an article in the New York Times talking about how the American Hospital Association is trying to fight the possibility that the healthcare reform legislation currently working its way through Congress might have in it a requirement that non-profit hospitals provide a certain amount of charity care. I heard about this from a posting from the Association for Healthcare Philanthropy, which is also gearing up its members.

The article quotes a bulletin sent to hospital leaders from AHA that says,“Ask your senators to oppose charity care proposal,” in big bold type.“A formulaic, one-size-fits-all charity care standard will hamstring hospitals’ efforts to respond to the unique needs of their communities,” the bulletin said. “It would penalize children’s, teaching and research hospitals and those in rural areas because they provide community benefit in a variety of forms other than just charity care.”

It worries me that non-profit hospitals are going to be seen as being against charity care. Even though that's not what the bulletin says, my guess is that's how it will be spun. And this is another example in a long history of non-profit hospitals acting like, and especially sounding like, big for-profit companies. It's why this proposed rule has made it in to the legislation in the first place. If the AHA and AHP aren't careful, non-profit hospitals will cease to exist, and that could be a major tragedy. As I've said in an earlier post, I believe that healthcare is a mission, and that mission is best served by non-profit organizations.