Half of hospitals spend just 1.4% or less of their operating expenses on charity care, though the level of charity care varies significantly facility by facility, according to a new analysis by the Kaiser Family Foundation.
Researchers reviewed hospital cost report data from 2020 and found that some hospitals provided little to no charity care. At 8% of hospitals, it made up 0.1% or less of operating expenses. Others provided more, with 9% of hospitals spending at least 7% of their overall operating expenses on charity care, Healthcare Dive reports.
That variation likely reflects differences in hospitals’ missions and business practices, need for charity care among patients and federal, state and local policies and regulations, KFF said. Charity care as a percent of operating expenses were 2.6% on average. Read more.