Senator Blasts Payment Policies at Nonprofit Hospitals

June 10, 2008

Senator Blasts Payment Policies at Nonprofit Hospitals

Sen. Charles E. Grassley, the senior Republican on the Senate Finance Committee, once again blasted nonprofit hospitals during a Senate hearing today about ways to fix the country’s health-care system.

The Iowa senator, who frequently questions whether nonprofit hospitals are earning their tax breaks, specifically criticized institutions that have an “upfront collection policy,” or demand cash payments from people with inadequate or no insurance before treating them.

He cited an article in The Wall Street Journal about a leukemia patient who had trouble getting care at the M.D. Anderson Cancer Center, in Houston, because her insurance did not cover all of her treatment.

That patient, Lisa Kelly, was scheduled to testify at the Finance Committee’s hearing, “47 Million and Counting: Why the Health Care Marketplace Is Broken.” “The troubling thing about her story is that these were actions taken by a hospital that is funded through taxpayer dollars and charitable gifts,” Mr. Grassley said.

He said nonprofit hospitals receive $40-billion in benefits through their exemptions from income, sales, and property taxes; tax-deductible contributions; and tax-exempt bonds.

“The current environment is no different than where we were over a hundred years ago,” he added. “Back then, people with money had private physicians who made home visits. The poor received treatment at alms houses supported by philanthropy. The only difference now is that many of those former ‘alms houses’ have become rich institutions that believe they no longer need to serve the poor to reap all the beneits of their tax-exempt status.”

M.D. Anderson told the Journal that it started the upfront-collection system in 2005 after its unpaid patient bills jumped by $18-million, to $52-million, threatening its mission to cure cancer.

Suzanne Perry

Comments

As a part of the UT System,M.D. Anderson’s payment policy and treatment of patient’s is indicative of the entire UT System of medical centers.UTMB in Galveston has been extensively critized by its plan to turn away patient’s without any insurance or income.UT Southwestern in Dallas,has been exposed as an institution that has a VIP program in medical care,which includes house calls for the very wealthy.Texas ranks 50TH in health care access and the state institutions are a primary reason.Although receiving tax exempt status,these Texas institutions display the disregard in the state for the poor,disadvantaged,uninsured,and this includes children in the state.The state legislature is heavily lobbied by the health care industry and the UT System and its presidents.The poor can only depend on the elected officials to make the right call.Senator Grassley has only touched the tip of the iceberg in Texas.

— Gary Jun 16, 08:14 AM #

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