Michigan Nonprofit Hospitals Provide More than $1.7 billion in Benefits

Michigan’s nonprofit community hospitals provided a value of more than $1.7 billion in community benefits that represent high-quality medical treatment provided to those who cannot afford it, as well as programs provided free to the community in 2005 (the most recent year for which data is available), according to a report released today by the Michigan Health & Hospital Association (MHA). This number also reflects the shortfalls of the unreimbursed costs of government programs such as Medicaid and Medicare, which hospitals must provide.

The MHA 2007 Hospital Community Benefits Report is based on data from 132 of Michigan’s nonprofit community hospitals. More than 90 percent of the state’s 146 nonprofit community hospitals voluntarily submitted data for the report, which quantifies hospital community benefits in the areas of traditional inpatient and outpatient care and programs and services designed to improve health.

"The MHA 2007 Hospital Community Benefits Report underscores the essential role of nonprofit hospitals," said MHA President Spencer Johnson. "Not only are they major employers, but they represent an anchor for economic development as Michigan seeks to attract and retain new businesses and workers."

The MHA has published the report annually for 10 years to illustrate nonprofit hospitals’ efforts to benefit the communities they serve beyond the delivery of essential health care services. In addition to statewide aggregate community benefits data, the report includes examples of actual community programs being conducted by hospitals.

Quick Facts from the MHA 2007 Hospital Community Benefits Report:

– In 2005, Michigan’s nonprofit hospitals provided more than $110 million in charity care and nearly $440 million in uncollectible costs for treatment, otherwise known as "bad debt." — In 2005, Michigan nonprofit community hospitals provided more than $350 million in care to Medicaid patients and nearly $386 million in care to Medicare patients that was not covered by payments from those programs. — In 2005, Michigan’s nonprofit community hospitals provided nearly $77 million in community health improvement services such as health education, outreach, screening, counseling, support, immunizations, free clinics and other services. — In 2005, more than 5.5 million Michigan citizens accessed free health education and screening services, totaling more than $30 million in community investment. — Nonprofit community hospitals provided nearly $16 million in free and reduced-fee clinic care to more than 240,000 Michigan citizens in 2005. — In 2005, Michigan nonprofit hospitals provided more than $18 million in financial and in-kind support to community efforts that improve quality of life.

For a copy of the 2007 report, please visit http://www.mha.org and click on "Resources" or contact Sherry Mirasola or Laura Schmidt at (517) 323-3443. The MHA is a state association, based in Lansing, that represents and supports Michigan hospitals, health systems and health care providers through education, advocacy and communication.