THE RESILIENCE OF RELIGIOUS HOSPITALS: A CORNERSTONE OF HEALTHCARE SAFETY NETS

Abstract

Healthcare expenditures in the United States have continued to rise, with expenditures reaching an astounding $4.3 trillion in 2021, representing a significant portion of the nation's Gross Domestic Product (GDP). Within this landscape, hospital inpatient services accounted for a substantial 19% of the total healthcare expenses. Religious hospitals, often serving as safety net providers, confront unique organizational and environmental challenges attributed to the substantial volume of charity care they provide. Consequently, these institutions are compelled to enhance their operational efficiency and foster greater coordination between their inpatient and outpatient facilities. This paper delves into the evolving challenges faced by religious hospitals in the United States.

As state and federal governments grapple with mounting financial pressures, religious hospitals are poised to experience diminished payments from critical programs such as Medicare and Medicaid. Commencing in 2017, the Centers for Medicare & Medicaid Services (CMS) implemented a withhold rate for Value-Based Purchasing, resulting in a 2% reduction from hospitals' base payments. This translated to a staggering $1.8 billion withheld from these hospitals, which was subsequently redistributed to hospitals boasting superior quality scores. The implication is that religious hospitals must undertake substantial operational improvements to maintain their competitiveness in an increasingly dynamic healthcare market.