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Arkansas Community Hospital Financial Indicators

Year Total Inpatient Charges Total Outpatient Charges Total Patient Charges Uncollected Bad Debts
1986 1,194,963,109 213,310,932 1,408,274,041 99,454,411
1987 1,300,146,307 270,939,929 1,571,086,236 81,107,533
1988 1,491,360,279 340,378,548 1,831,738,827 98,109,823
1989 1,700,596,126 428,431,429 2,129,027,555 117,482,546
1990 2,041,275,640 548,258,433 2,589,534,073 125,031,048
1991 2,307,622,750 682,801,370 2,990,424,120 163,592,104
1992 2,551,582,773 862,633,587 3,414,216,360 184,749,580
1993 2,722,861,890 1,018,020,045 3,740,881,935 212,858,139
1994 2,780,850,665 1,136,369,830 3,917,220,495 236,455,744
1995 2,931,380,789 1,333,350,521 4,264,731,310 303,897,568
1996 3,135,474,445 1,537,088,806 4,672,563,251 395,978,531
1997 3,292,550,631 1,732,174,525 5,015,725,156 282,840,657
Total % Increase 175.5% 707.8% 256.2% 185.4%

 

Year Charity Care Provided Total Uncollected Charges Total Payments Received Total Operating Costs
1986 19,867,102 320,716,376 1,087,557,665 1,101,235,640
1987 27,359,296 401,400,280 1,169,685,956 1,152,007,338
1988 37,827,847 524,215,948 1,307,522,879 1,277,295,461
1989 42,116,634 665,232,712 1,463,794,843 1,478,566,201
1990 61,275,220 898,904,774 1,690,629,299 1,685,046,599
1991 76,279,409 1,123,331,907 1,867,092,213 1,825,573,820
1992 71,188,541 1,313,426,376 2,100,789,984 2,078,393,611
1993 82,595,281 1,494,233,248 2,246,648,687 2,229,491,032
1994 111,093,357 1,633,278,763 2,283,941,732 2,244,921,469
1995 112,503,190 1,896,870,528 2,367,860,782 2,304,500,580
1996 124,720,073 2,103,205,279 2,569,357,972 2,514,053,912
1997 159,408,747 2,302,373,072 2,713,352,084 2,583,850,005
Total % Increase 702.4% 617.9% 149.5% 134.6%

Source: American Hospital Association

The gap between charges for hospital services and actual payments received has widened over the past 11 years. Gross patient revenues (the amount of billed charges) rose from $1.94 billion in 1986 to $5 billion in 1997, posting a 256.2% overall increase. Net patient revenues, however, rose only 149% for the period. The difference in what is charged and what is received is known as unreimbursed care and is generally uncollectable by hospitals. That figure ballooned 618% over the period, rising from $320 million to $2.3 billion. In 1997, more than 45% of the average hospital bill remained uncollectable. That rate is expected to increase more quickly between 1998 and 2002 as Arkansas hospitals begin to see their Medicare revenues fall dramatically as a result of the Balanced Budget Act of 1997.