Kansas hospital's charity figure debated |
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Wed, 31 Oct 2007 18:10
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TOPEKA, Kan. (AP) - An audit says that the University of Kansas Hospital could be significantly overestimating the value of the charity care it provides because of standard accounting and industry reporting practices.The hospital, in Kansas City, Kan., reported that it provided nearly $81 million worth of services for which it was not compensated during its 2006 fiscal year.The hospital based that figure on the fees it would have charged for those services had the patients or insurers paid for the care. That's the standard method.But legislative auditors questioned whether the figure is meaningful.First, the auditors noted that hospitals often don't collect their stated fees, even when a patient has insurance. On average, auditors said, the hospital's fees are discounted 61 percent.Had the discount rate been applied to the value of charity care, it would have been less than $32 million.And the auditors said some groups, including the American Hospital Association and the federal Governmental Accountability Office, believe the figure for charity care should be based on the actual cost of providing the services, an even lower figure.In fiscal 2005, when the hospital reported about $73 million in charity care, the figure would have been less than $25 million if it had been based on the cost of services. That's about a third of what was reported.But Bob Page, the hospital's chief executive officer, told auditors in a letter that there's no uniform method for calculating costs and that some hospitals' costs are offset by special tax levies.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Kansas hospital battle cooling 