Uninsured costs skyrocket at Edward Hospital
Costs to cover under- or uninsured patients at Edward Hospital in Naperville increased by nearly 50 percent last year.
Edward officials said they spent nearly $9 million in the fiscal year that ended in June 2008 on charity care. In all, the Naperville hospital distributed nearly $65 million in financial assistance during that time period.
"This is the fifth year in a row our charity care has gone up," said Edward CEO Pam Davis.
Davis said the lion's share of the financial assistance went to cover $41 million that Medicaid and Medicare don't reimburse. Another $7.8 million was used to cover bad debt accrued by patients who don't pay and may even qualify for financial assistance. The hospital also spent $7 million on free programs and health events during the year, Davis said.
Edward Chief Financial Officer John Mordach said the increase in charity care was due to the hospital opening the program to more people.
One of the people who benefitted is Donna Palm. The 61-year-old Naperville woman had a medical indemnity policy she had erroneously been told would cover major medical needs. When she had her gall bladder removed in March 2008, she discovered her policy covered only $4,500 of the $45,000 she owed Edward.
"I didn't know how I was going to pay," Palm said. "I called and told them my circumstances and they sent me forms to fill out. I returned them on a Friday morning and by 3 p.m. that afternoon I had a phone call telling me they were going to wipe away the remainder of my hospital bill."
Funding for the financial assistance program comes from the hospital's investments and any excess operating revenue the hospital takes in, officials said.
Davis said Edward is one of the top givers in the hospital's region. According to an Illinois Department of Public Health report from 2007, Edward spent $6.1 million on charity care. Out of the eight hospitals in Edward's region, only Central DuPage Hospital in Winfield distributed more, with $8.4 million.
Officials from Adventist Bolingbrook Hospital reported charity care at $4 million in 2008 and a total of $27.6 in all financial assistance. The eight Advocate Health Care hospitals - including Advocate Good Samaritan in Downers Grove - reported $344 million in financial assistance from 2007.
Still, some question whether nonprofit hospitals are giving enough. The Chicago-based Center for Tax and Budget Accountability recently released a study comparing the property tax exemptions of 47 nonprofit hospitals mostly in Cook County to the amount of charity care they provide. The study showed the hospitals received nearly $500 million in tax breaks while covering $175 million in charity care.
Edward was not part of the study, but Davis defended all hospitals' financial assistance programs.
"There is no benefit that I know of that takes the burden off government more than hospitals," she said. "There's no requirement, and every single hospital takes a huge burden off the government."
Hospital charity
Here's a look at what some local hospitals spent on charity care in 2007.
Edward (Naperville)
Charity: $6.1 million
Admissions: 27,094
Central DuPage (Winfield)
Charity: $8.4 million
Admissions: 21,323
Provena St. Joseph (Joliet)
Charity: $4 million
Admissions: 23,894
Rush Copley (Aurora)
Charity: $3.8 million
Admissions: 13,011
Adventist (Hinsdale)
Charity: $3.4
Admissions: 14,469
Advocate Good Samaritan (Downers Grove)
Charity: $2.8 million
Admissions: 16,478
Silver Cross (Joliet)
Charity: $2.7 million
Admissions: 17,141