Article “Profit decline forces LGH to refine best practices” reports:
“According to the IRS Form 990 released earlier this month on its website, LGH had $60.3 million left over after paying the bills last year. Such a surplus would be the envy of many other health care providers.
“But it marked the fifth year in a row that the surplus declined. It’s down more than 55 percent from its peak of $136.8 million in 2007.
“None of it surprised executives at parent Lancaster General Health. They knew more and more patients were shifting to government health insurance programs such as Medicare and Medicaid, which don’t always reimburse providers for the true cost of care. They knew operating costs were rising; they knew demand for inpatient care was dropping”… (more)
WATCHDOG: The statement “…which don’t always reimburse providers for the true cost of care” is both vague and misleading.
First of all, what does LGH consider “true cost of care”? They have set rates that way overcharge those without insurance while offering say 25% discount to the Amish and greater discounts to health insurance companies.
While it is understood that Medicaid may not fully reimburse costs, Medicare (a much larger program covering seniors and some others) pays considerable more. The report seems subject to the usual LGH “spin.”
The only way we learn about LGH’s finances is from the Federal 990 Report for non-profits that they are required to file each year. LGH’s trustees are all Caucasian and members of the establishment, with much of the population hardly represented if represented at all on the board.
Current trustees appoint future trustees. The county and city have no say.
LGH does not allow the public to attend its board meetings except for once a year, and even then it declines to allow public comment.
LGH is extending its tentacles into all medical services throughout the county, pursuing monopolistic control. This enables it to charge health insurers more who in turn pass along the additional costs to policy holders, plus their usual mark up. This is a major factor in enabling LGH to earn more than most other hospitals.
As a tax exempt 501(c)3, LGH non-profit, LGH is owned by the citizenry. But it doesn’t act that way.
LGH does offer the Amish and others discounts. They start at something like 20% if you’re without insurance and the less in assets you have, the greater the discount.
A an unemployed member of my church got nearly all of his hospital bills waived as a result of the hospital’s financial assistance program. It was amazing.
EDITOR: The bill was likely reimbursed through Medicaid. LGH would have recuoped a large portion of its costs.
Not the point. You suggest that LGH doesn’t offer discounts. They do.