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Uncompensated Care at Minnesota Hospitals Drops for the Second Year in a Row

Hospital uncompensated care has decreased 16.7% in the first two years of full implementation of the ACA.

$129 $151

$191 $208

$244 $268 $278

$311 $308 $316 $321$305

$268

Mill

ions

of D

olla

rs

Uncompensated care in 2015 is now back at the level it was in 2008.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Both charity care and bad debt declined in 2015 Bad debt increased in the first year of the ACA but now has declined in the second year of the program.

2009 2010 2011 2012 2013 2014 2015

$200

$180

$160

$80

$60

$40

$20

$0

Mill

ions

of D

olla

rs

In 2015 uncompensated care decreased for bothinsured and uninsured patients at Minnesota hospitals

$350

$300

$250

$200

$150

$100

$50

$0

Mill

ions

of D

olla

rs

2013 2014 2015

$192

$129 $134 $118

$171 $149

A larger percent of uncompensated care dollars are going to patients with health insurance in 2015 compared to 2013

44% Insured

56% Uninsured

Source: Minnesota Department of Health analysis of Hospital Annual Reports, including preliminary Hospital Annual Reports from 2015.

Definitions: Hospital uncompensated care: Care provided to patients by hospitals which they do not receive payment for. Uncompensated care has two components, charity care and bad debt.

Charity care: Care for which no payment is expected because patients are eligible for free or discounted care based on their income

Bad debt: Care for which payment was expected, but not received

16.7%

Hospital Uncompensated Care

Bad Debt$140

$120

Charity Care$100