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Health systems bandaging profit margins; Executives fight bad debt, cut costs to grow revenue.(Focus)
- Article from:
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Crain's Detroit Business
- Article date:
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December 3, 2007
- Author:
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Copyright informationCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Sherri Begin
Higher numbers of uninsured and underinsured people in the region continue to put pressure on health systems' profit margins.
The extended benefits and temporary coverage of laid-off employees are starting to run out, health care system executives say. That eventually translates into bad debt write-offs as hospitals cover costs to care for uninsured patients, and co-payments and deductibles owed by many insured patients go unpaid.
Unemployment rates also continue to rise, and many employers are moving to higher co-pays for employees, opening the door to more bad debt.
"The reality is that any time you put higher responsibility for health ...