Thursday, December 12, 2013

Money Texas Is Leaving On the Hospital Operating Table By Rejecting Medicaid Expansion: 2011 Bad Debt Charges of $7.8 Bil and Charity Care Charges of $10.3 Bil

In my recent post Texas County District Non-Profit Hospitals Post Massive Operating Losses Pointing To Need For Medicaid Expansion, I showed that due to the very high percentage of uninsured and underinsured in the State of Texas, the Texas County District Hospitals are really taking it on the chin with massive Hospital Operating Losses, which are being financed almost solely with Property Tax Revenues.

To get a better handle on the extent of this problem, I reviewed the Texas State Health website.

Unlike other States like California, Florida, Tennessee and Indiana, Texas has decided to not be totally transparent with its citizens and show them how much profit or loss each of its hospitals are making.

But Texas did reveal 2011 Bad Debt Charges, Charity Care Charges and Net Patient Revenues for each of 539 of its Acute Care Hospitals that returned hospital surveys.

These Bad Debt Charges and Charity Care Charges are particularly relevant in assessing the financial impact if Texas were to Expand Medicaid fully.

The amounts of these Texas Hospital Bad Debt Charges and Charity Care Charges are just mind-boggling.

These 539 Texas Acute Care Hospitals had Total Bad Debt Charges of $7.785 bil in 2011, which was a huge 13.7% of their Total Net Patient Revenues of $56.648 bil in 2011.

And these 539 Texas Acute Care Hospitals had Total Charity Care Charges of $10.297 bil in 2011.

If Texas were to Expand Medicaid fully, a substantial portion of these two massive amounts would be reduced, resulting in a huge increase in Hospital Patient Revenues.

Since Texas Hospitals would get substantially enhanced financially from Medicaid Expansion in Texas, it only makes sense that hospital patient prices would decline, health insurance premiums would decline, the State of Texas financial coffers would be substantially enhanced, and Texas taxes assessed on individuals and businesses would also decline, especially Property Taxes which are now financing the massive Operating Losses of the Texas County District Hospitals.

First, below here are the 41 individual Texas Hospitals with Combined Bad Debt Charges and Charity Care Charges of at least $100 mil each in 2011.  The Totals for these 41 Hospitals comprise 51% of Total Bad Debt Charges and 72% of Total Charity Care Charges of all 539 Texas Acute Hospitals combined:





2011



2011 2011 Net



Bad Charity Patient
Texas Texas
Debt Care Service
County City Texas Hospital Name Charges Charges Revenues



$ mils $ mils $ mils






Dallas Dallas Parkland Memorial Hospital            337         1,195            657
Harris Houston Harris County Hospital            327         1,101            475
Bexar San Antonio Baptist Medical Center            894              51            932
Tarrant Fort Worth John Peter Smith Hospital            282            649            612
Travis Austin University Med Ctr Brackenridge              71            360            346
Bexar San Antonio University Hospital              64            293            386
El Paso El Paso University Medical Center El Paso            116            190            205
Bell Temple Scott and White Memorial Hospital              66            221            775
Smith Tyler Mother Frances Hospital              30            249            488
Lubbock Lubbock University Medical Center            208              34            374
Harris Houston The Methodist Hospital              28            210         1,167
Hidalgo Edinburg Edinburg Regional Medical Center              31            195            376
Harris Houston University of Texas Anderson Cancer Ctr              47            178         2,777
Bexar San Antonio Methodist Hospital              90            123         1,306
Harris Houston Memorial Hermann Hospital              28            179            954
Dallas Dallas Baylor Medical Center              73            128         1,021
Smith Tyler East Texas Medical Center              64            137            410
Nueces Corpus Christus CHRISTUS Spohn Hospital Hospital Corpus Christi              42            156            542
Lubbock Lubbock Covenant Medical Center              63            128            602
Gregg Longview Good Shepherd Medical Center              96              81            352
Tarrant Fort Worth Texas Health Harris Methodist Ft Worth              52            121            691
Potter Amarillo Northwest Texas Hospital              29            140            287
Dallas Dallas Methodist Dallas Medical Center              24            144            388
Bexar San Antonio CHRISTUS Santa Rosa Hospital               36            130            582
Galveston Galveston University of Texas Medical Branch Hosp            113              44            473
Jefferson Beaumont CHRISTUS St Elizabeth Hospital              37            114            387
Wichita Wichita Falls United Regional Health Care System              31            120            307
Webb Laredo Laredo Medical Center              87              36            287
Dallas Dallas Children's Medical Center at Dallas              52              67            934
Harris Houston St Luke's Episcopal Hospital              35              81            882
McLennan Waco Hillcrest Baptist Medical Center              50              61            229
Harris Cypress North Cypress Medical Center              54              53            401
Ector Odessa Medical Center Health System              88              19            186
Dallas Dallas Methodist Charlton Medical Center              22              81            212
Harris Houston Memorial Hermann Southwest Hospital               69              33            331
Cameron Harlingen Valley Baptist Medical Center              57              45            285
Brazos Bryan St Joseph Regional Health Center              30              71            289
Harris Baytown San Jacinto Methodist Hospital              24              77            213
Travis Austin Seton Medical Austin              23              77            432
Harris Pasadena Bayshore Medical Center              61              39            327
Angelina Lufkin Memorial Medical Center of East Texas              61              39            174








Total all 41 Texas Hospitals         3,992         7,450       23,054

And second, below here are the 31 individual Texas Governmental Hospitals with Combined Bad Debt Charges and Charity Care Charges of at least $10 mil each in 2011. The Total Bad Debt Charges of $1.944 bil were an incredibly huge 23.7% of the Total Net Patient Revenues of these 31 Texas Governmental Hospitals.  And Total Charity Care Charges were an even much higher $3.933 bil.  If Texas were to Expand Medicaid fully, this is where the substantial Property Tax reductions should eventually occur:





2011



2011 2011 Net



Bad Charity Patient
Texas Texas
Debt Care Service
County City Texas Hospital Name Charges Charges Revenues



$ mils $ mils $ mils






Dallas Dallas Parkland Memorial Hospital        337      1,195        657
Harris Houston Harris County Hospital        327      1,101        475
Tarrant Fort Worth John Peter Smith Hospital        282        649        612
Bexar San Antonio University Hospital          64        293        386
El Paso El Paso University Medical Ctr El Paso        116        190        205
Lubbock Lubbock University Medical Center        208          34        374
Harris Houston University Texas Anderson Cancer Ctr          47        178      2,777
Galveston Galveston University Texas Medical Branch Hosp        113          44        473
Ector Odessa Medical Center Health System          88          19        186
Midland Midland Midland Memorial Hospital          56          15        235
Dallas Dallas Univ Texas Southwestern Med Ctr          37          31        568
Victoria Victoria Citizens Medical Center          40          17        168
Harris Tomball Tomball Regional Hospital          34          15        181
Nacogdoches Nacogdoches Nacogdoches Memorial Hospital          13          27          78
Fort Bend Richmond OakBend Medical Center          23          16          69
Hunt Greenville Hunt Regional Medical Ctr Greenville          27            8        114
Wise Decatur Wise Regional Health System          25            9        121
Guadalupe Sequin Guadalupe Regional Medical Center          10          17          86
Bee Beeville CHRISTUS Spohn Hospital Beeville            4          14          33
Titus Mount Pleasant Titus Regional Medical Center          13            4          64
Cooke Gainesville North Texas Medical Center          10            7          30
Uvalde Uvalde Uvalde Memorial Hospital            9            7          48
Matagorda Bay City Matagorda Regional Medical Ctr          12            3          47
Smith Tyler University Texas Health Center-Tyler          13            1          43
Hopkins Sulphur Springs Hopkins County Memorial Hospital            8            5          52
Val Verde Del Rio Val Verde Regional Medical Center          10            3          46
Brazoria Angleton Angleton-Danbury Medical Center          12            1          25
Bexar San Antonio Texas Center for Infectious Disease           -            13           -  
Jasper Jasper CHRISTUS Jasper Memorial Hospital            3            9          27
Palo Pinto Mineral Wells Palo Pinto General Hospital            3            8          31








Total all 31 Government Hospitals      1,944      3,933      8,211

Look how incredibly high both the Bad Debt Charges and Charity Care Charges of the Top 5 above are relative to their related Revenues.  These will be the Hospitals with just massive Operating Income Improvement if Medicaid were fully Expanded in Texas.