Pre-Reform Impact of Self-Pay Patients on US Hospitals

PRE-REFORM IMPACT OF SELF-PAY PATIENTS ON US HOSPITALS THERE IS WIDE VARIATION IN SELF-PAY UNCOMPENSATED CARE COSTS' ABOUT /6 OF ALL SELF-PAY INPATIENTS ARE SCHEDULED ADMISSIONS... ACROSS US HOSPITALS... SELF-PAY ENTRY POINTS IN HOSPITALS PERCENT OF US HOSPITALS (N=400 SHORT TERM ACUTE CARE HOSPITALS) US MEDIAN BIRTH 4.0% 45 FACILITY TRANSFER 40 8% 8% 35 OF TOTAL HOSPITAL COSTS 17% 30 SCHEDULED 25 ADMISSION 20 15 10 0-2 3-5 6-8 9-11 12+ 67% Self-pay uncompensated care costs as % of total hospital costs EMERGENCY ...AND THAT VARIATION IS CORRELATED TO GEOGRAPHIC REGION DEPARTMENT MEDIAN SELF-PAY UNCOMPENSATED CARE COSTS BY REGION US MEDIAN ... THOUGH SELF-PAY SCHEDULED ADMISSIONS ARE I/2 AS LIKELY TO BE ELECTIVE AS THOSE OF THE INSURED 4.0% PERCENT OF ELECTIVE SCHEDULED ADMISSIONS (N=12 MILLION ADMISSIONS) OF TOTAL HOSPITAL COSTS 1.5% ÅI1IA 32% 會 會 六 會 會 會 六 64 % 3.0% 4.0% SELF-PAY INPATIENTS 5.5% INSURED INPATIENTS I LOWEST MEDIAN I HIGHEST MEDIAN ОВЈЕСТIVEНЕALTH" FOOTNOTE: SOURCES: 1. Uncompensated care cost = cost of self-pay cases net of payments received 2. Bom to self-pay patient 3. As a percent of all admissions by insurance status Objective Health de-identified dient data Premier discharge database Objective Health analysis A MCKINSEY SOLUTION FOR HEALTHCARE PROVIDERS Copyright 2011, Objective Health, a McKinsey Soltuion for Healthcare Providers.