A report from the Wisconsin Hospital Association revealed the amount of uncompensated healthcare, which includes unpaid debts, has risen 14% in the past two years and now stands at more than $1.1 billion. The amount of bad debt accounted for $583 million of that total, according to the report.
The University of Wisconsin Hospital and Clinics Authority was the facility with the highest total of bad debt among all hospitals in the state, with just under $50 million. That total was well above the next-highest on the list, Froedtert Memorial Lutheran Hospital, which had $36 million in unpaid debts. All told, there were 13 facilities with at least $10 million in bad debt, according to the report.
The amount of bad debt at Wisconsin hospitals is expected to increase to $628 million from $583 million during the next fiscal year. Among the factors that are expected to impact that increase are:
- A hospital’s historical fiscal year and its most recent year-to-date total number of patients and patient charges
- Changes in regulations, coverage and insurance plan design
- Planned price changes
- Projected volume changes
- Known usage factors (including the area’s economy and demographics)
- Required Hill-Burton program compliance levels
- Hospital budget constraints
- A hospital’s mission statement to support the community
Changes to the Affordable Care Act are being cited as the likely reason for the sudden spike in uncompensated healthcare totals.
