Safety Net Hospitals Face $22 Billion in Unpaid Costs, New Report from America’s Essential Hospitals Shows

FOR IMMEDIATE RELEASE

Washington, D.C. - Essential hospitals provided $11 billion in uncompensated care in 2023, and an additional $11 billion in under-reimbursed care, according to findings from America's Essential Hospitals' Essential Data report.

These financial challenges resulted in an aggregate operating margin of -7.0% for the association's member hospitals, more than three times lower than the aggregate operating margins for all other hospitals (-2.3%).

"This report shines a light on the severe financial challenges facing essential hospitals, which will be dramatically increased in the coming years with the unprecedented Medicaid cuts in H.R. 1. Essential Data illustrates the challenges facing essential hospitals, as well as the crucial role they play in the nation's overall health care," said Jennifer DeCubellis, president and CEO of America's Essential Hospitals.

Additional highlights from the report include:

• Member hospitals make up 6% of the nation's hospitals but include 31% of level I trauma centers and 43% of burn care beds.
• Member teaching hospitals trained an average of 193 physicians in 2023, compared to an average of 74 physicians for other U.S. teaching hospitals.
• Member hospital spending supported an estimated $307 billion in economic activity and 7 million jobs in 2023.