Rhode Island Department of Health, Hospital Association Differ on Uncompensated Hospital Health Costs in 2006

Rhode Island hospitals provided $26 million in uncompensated care in 2006, according to a state Department of Health estimate released last week, the Providence Journal reports. The estimate includes both charity care and bad debt. The overall amount of uncompensated care at Rhode Island's 13 hospitals increased by $1.4 million from 2005 to 2006, and as a share of all revenues, the cost of uncompensated care was 1.06% in 2005 and 1.05% in 2006, the report found. Two hospitals in the state received more in subsidies in 2006 than they provided in uncompensated care, according to the report.

Ana Novais, executive director of the health department's Division of Community Health and Equity, said, "Hospitals are an important part of the health care safety net and provide a large amount of uncompensated care as a benefit to the community," adding, "This report provides Rhode Islanders with a more comprehensive picture of the actual expenses of uncompensated care to hospitals after acknowledging the subsidies they receive to compensate them for these unreimbursed services."

However, Hospital Association of Rhode Island President Edward Quinlan in a statement on Friday said, "The methodology and data used in the report is significantly flawed." He said, "Using data provided to the Rhode Island Department of Health by hospitals, HARI has calculated uncompensated care to total $124.9 million in 2006, an increase of 16% from 2005." Quinlan said, "We are concerned this report may generate confusion about this important issue," and he called on the department to "rescind this report until it accurately reflects the uncompensated care provided by hospitals" (Hill, Providence Journal, 3/10).

The health department's report is available online (.pdf).