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Factors Accociated with the Provision of Uncompensated Care in Pennsylvania Hospitals

Author: MICHAEL D. ROSKO
Published in JHHSA, Vol. 24 No. 3

Data from 190 Pennsylvania hospitals in 1995 were used in regression
analysis of the determinants of uncompensated care and profitability.
Uncompensated care as a percentage of operating expenses was negatively
related with hospital size and positively associated with obstetrical
services emphasis, emergency visit mix, area unemployment rate, and sole
community hospital status. Hospital profitability was not associated
with uncompensated care; it was negatively associated with HMO
penetration. Medicare and Medicaid share of admissions and religious
ownership; and it was positively associated with medium size.
Pennsylvania hospitals may have been shielded from the financial burdens
of uncompensated care by the availability of funds from other sources
that may not be available in the future. Consequently, unless new sources
of funding are developed or insurance coverage expanded, financial
pressures from providing uncompensated care may cause hospitals to
face the dilemma of abandoning uninsured patients or risking financial
insolvency.

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