Home Medicine Chapter 9. The Declining Public Hospital Sector
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Chapter 9. The Declining Public Hospital Sector

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200Public hospitals have long served as the backbone of the health care safety net,caring for the poor, uninsured, and racial and ethnic minorities, as well as pro-viding critical regional services. In major metropolitan areas, public hospitalsprovide more than 20 percent of emergency and 33 percent of outpatient visits, as well as 60 percent of burn and 36 percent of trauma care. Medicaidand uninsured patients account for more than 50 percent of all public hospitalvisits (NAPH 2009). In rural areas, they are major components of local healthsystems, representing nearly 40 percent of hospitals. Public hospitals have also traditionally provided extensive outpatient services, community publichealth programs, and culturally and linguistically appropriate care.Under health reform, there will continue to be a need for safety-net hos-pital services. It has been estimated that, following the implementation ofhealth reform, 23 million Americans will still be uninsured and 16 million will be covered by Medicaid or the State Children’s Health Insurance Program,populations historically reliant on public hospitals (CBO 2010).In the wake of the 2008 recession, state and local governments have beenunder financial pressure, which has in turn threatened the financial stability ofpublic hospitals. State and local budget crises have prompted large cutbacks in funding for many institutions while the number of uninsured and those covered by Medicaid have grown at record rates (Hartocollis 2010; KFF 2010;Skipp 2010; Sun and Mummolo 2010).Prior to the economic downturn, public hospitals were already battlingfinancial and political pressures to survive in an increasingly cost-drivenhealth care market, and many were closed or converted to private ownershipThe Declining Public Hospital SectorChapter 9Jack Needleman and Michelle Ko
© 2019 Rutgers University Press, New Brunswick

200Public hospitals have long served as the backbone of the health care safety net,caring for the poor, uninsured, and racial and ethnic minorities, as well as pro-viding critical regional services. In major metropolitan areas, public hospitalsprovide more than 20 percent of emergency and 33 percent of outpatient visits, as well as 60 percent of burn and 36 percent of trauma care. Medicaidand uninsured patients account for more than 50 percent of all public hospitalvisits (NAPH 2009). In rural areas, they are major components of local healthsystems, representing nearly 40 percent of hospitals. Public hospitals have also traditionally provided extensive outpatient services, community publichealth programs, and culturally and linguistically appropriate care.Under health reform, there will continue to be a need for safety-net hos-pital services. It has been estimated that, following the implementation ofhealth reform, 23 million Americans will still be uninsured and 16 million will be covered by Medicaid or the State Children’s Health Insurance Program,populations historically reliant on public hospitals (CBO 2010).In the wake of the 2008 recession, state and local governments have beenunder financial pressure, which has in turn threatened the financial stability ofpublic hospitals. State and local budget crises have prompted large cutbacks in funding for many institutions while the number of uninsured and those covered by Medicaid have grown at record rates (Hartocollis 2010; KFF 2010;Skipp 2010; Sun and Mummolo 2010).Prior to the economic downturn, public hospitals were already battlingfinancial and political pressures to survive in an increasingly cost-drivenhealth care market, and many were closed or converted to private ownershipThe Declining Public Hospital SectorChapter 9Jack Needleman and Michelle Ko
© 2019 Rutgers University Press, New Brunswick
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