The American Hospital Association says a recent analysis by health economists claiming that nonprofit health systems are seeking taxpayer subsidies for investment losses last year is “patently false,” Becker’s reports.
“…entities with deep pockets and an apparent vendetta against hospitals and health systems have turned their attention toward the broader financial challenges facing the field,” Aaron Wesolowski, AHA’s vice president of policy, research, analytics and strategy, wrote March 29.
As a result, the economists’ conclusions are “a complete misunderstanding of current economic realities” and should not be used to influence public policy, he wrote.
In its blog post, the AHA sought to clarify three key claims made by the economists: hospitals are seeking a bailout from the federal government and private payers, risky investments are the “most problematic” piece of hospital financing, and hospitals are being dishonest about the current financial state of the industry.
The three economists from RAND Corp., Manhattan College and Johns Hopkins University wrote in Health Affairs on March 24 that investment losses accounted for 85 percent of overall financial losses at some of the nation’s largest nonprofit health systems in 2022.
