Does state budget pressure matter for uncompensated care spending in hospitals? Findings from Texas and California

摘要: SUMMARY Objective This study examined the impact of state budget cuts on uncompensated care at general acute hospital organizations. This capitalized variations in states Texas and California to form a natural experiment testing joint cut status costs, as well specific charity costs bad debt expenses from indigent patients. Methodology Budget occurred year 2004. Information was obtained Department Health Services regarding financial characteristics hospitals American Hospital Directory annual survey organizational hospitals. We created three dependent variables: RUC (the ratio total gross patient revenue), RCC revenue) RBD revenue). Using two-period panel data set individual fixed effects, we captured spending that could also have influenced status. Additionally, hospitals' spending, estimated using similar methodology. Population studied In this study, included 416 (in Texas) 352 California) public, not-for-profit (NFP) for-profit (FP) completed during period 2002–2005. Findings For Texas, results effect model confirmed 2005 directly related increased RCC. The coefficients were significantly positively associated with (0.43, p < 0.05) (0.29, p < 0.05). These supported findings would be more than any other year, things being equal. However, for California, even though coefficient significant (0.31, p < 0.05), not statistically 2005. Conclusion The healthcare industry is characterized by regulation, growing number uninsured patients, increasingly stringent reimbursement competitive practices among providers. Federal agencies are restricting criteria eligibility outlier payments provisions. Tax exempt many NFP tied performances, particularly provision care. provides evidence pressure provided Copyright © 2012 John Wiley & Sons, Ltd.