Minnesota Hospitals Provide Less Charity Care Than National Average
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An investigation has found Minnesota hospitals spend about one-third the national average on charity care, with many dedicating less than 0.5% of their budgets to patient aid. This occurs as healthcare debt burdens an estimated 100 million people nationwide. While eligibility standards vary widely, hospitals are facing scrutiny over their financial assistance practices.
Facts First
- Minnesota hospitals spend about one-third the national average on charity care from their operating budgets.
- 62 of Minnesota's 123 general hospitals devoted less than 0.5% of their budgets to charity care between 2020 and 2024.
- Healthcare debt burdens an estimated 100 million people across the United States.
- Charity care eligibility standards vary widely, with some Minnesota hospitals offering free care for household incomes up to $47,000 and others capping it at $15,000.
- More than two-thirds of hospitals investigated require detailed information on assets like retirement accounts and property to determine aid eligibility.
What Happened
A Minnesota Star Tribune-KFF Health News investigation found that Minnesota hospitals and health systems provide less financial aid as a percentage of operating budgets on average than hospitals in almost every other state. Nationally, hospitals spend an average of approximately 2.4% of operating budgets on charity care, according to federal data compiled by Hossein Zare of Johns Hopkins University. Minnesota hospitals spend approximately one-third of that national average. Of Minnesota's 123 general hospitals, 62 devoted less than 0.5% of their operating budgets to charity care between 2020 and 2024. CentraCare's flagship St. Cloud Hospital spent less than 0.25% of its budget on charity care, which equates to $25 in patient aid for every $10,000 spent on operations.
Why this Matters to You
If you face a significant medical bill, your ability to receive financial aid from a hospital may depend heavily on where you receive care and your specific assets. Charity care eligibility standards vary in Minnesota; some hospitals provide free care for household incomes up to $47,000, while others cap it at $15,000. More than two-thirds of hospitals investigated require information on retirement accounts, life insurance, property, and vehicles to determine aid eligibility, which could make qualifying more difficult. This situation may become more pressing as the nation's uninsured rate is expected to increase due to budget cuts affecting Medicaid and other safety net programs.
What's Next
Hospitals like CentraCare state they provide assistance such as helping patients enroll in insurance to provide broader, longer-term protection. However, the wide variation in aid standards and low spending levels suggest patients may need to be proactive in understanding a hospital's specific financial policies before receiving care. Public scrutiny of these practices could lead to increased pressure on hospitals to review and potentially standardize their charity care eligibility criteria.