Hospital system’s “community benefits” $122 million

Community Medical Centers provided nearly $122 million in uncompensated services to the medically underserved in fiscal year 2006-07, equivalent to nearly 15 percent of its total expenses, according to the nonprofit hospital system’s annual community benefits report filed with the State of California.

Community has historically spent more on uncompensated community benefits than all other Fresno-area hospitals combined, and some years, nearly double their combined total.

Community’s nearly $122 million in uncompensated community benefits came on a budget of nearly $830 million. That compares with more than $124 million spent on community benefits in fiscal year 2005-06.

Tim Joslin

“No other hospital in the Valley shoulders this kind of load,” said Tim Joslin, CEO of the Community system. “It’s evidence of our deep commitment to the region, and I’m proud of that. Though from a financial standpoint, the steep escalation rate of uncompensated care creates a tremendous financial burden on Community.”

The “community benefits” figure reflects services for which the hospital system is not paid or is under-paid. It includes charity care, unpaid costs for Medi-Cal and Medicare services, uncompensated costs of the UC-affiliated medical education program, and the uncompensated costs of outreach efforts such as Community’s asthma and diabetes education programs and the Mothers Resource Center.

Community operates 15 health-care facilities, including the only combined burn and Level 1 trauma units between Los Angeles and Sacramento.  It is the region’s largest private employer with about 6,000 staff, along with 1,100 affiliated physicians and 900 volunteers. Community also serves as the region’s safety net hospital, through its 1996 contract with Fresno County.

“It takes more than $2 million a day to run all of Community’s operations,” Joslin said. “So this $122 million is the equivalent of running our operations for more than two months a year and not being paid for the medical services provided.”
 
Community is rebounding from recent financial difficulties caused by unfunded or under-funded care. It reported a positive bottom line of nearly $9 million for the fiscal year ending last August.

As a condition for tax-exempt status, nonprofit hospitals such as Community are required by state law to report the uncompensated benefits they provide each year.

This story was reported by John Taylor. He can be reached at jtaylor@communitymedical.org.

Thursday, December 20, 2007