About Alan:

Alan received a Masters in Accounting from the University of Houston, became a CPA and a Fellow in HFMA. He had a lengthy career in Healthcare Finance serving in positions such as: VP of Finance of the Healthcare Div. of HAI, VP of Finance for Cardinal Glennon Children's Hospital and CFO of Adena Health System. He specialized in budgeting, strategic financial plan development, operational analysis and management reporting systems.

This would seem to be good training for his role of "watch dog" of the Federal Budget.

Saturday, February 8, 2014

Clinics for the Uninsured

By Alan R. Davis

 Last night (2/7/14) on “The Factor” Bill made the suggestion that the Federal Government should open up clinics for the uninsured.  That leads me to believe that he's one of the many people wrongly equate “Lack of Insurance” with “Lack of Access to Healthcare”.  However the two aren’t equal.  There’s a long history of improving access to healthcare for the “poor” in our country.  Having recently taught a course in Healthcare Finance I covered that topic.  A few of the highlights follow.

At the founding of our country healthcare was provided by physicians in individuals’ homes.  A good reminder of that is the scene from the HBO series “John Adams” in which his daughter underwent breast surgery (for cancer) in an upstairs bedroom. 

By the mid 1700’s there was a growing sick homeless population in Philadelphia so Ben Franklin and Dr. Thomas Bond worked to establish the first hospital in the colonies.

" Faced with increasing numbers of the poor who were suffering from physical illness and the increasing numbers of people from all classes suffering from mental illness, civic-minded leaders sought a partial solution to the problem by founding a hospital.”

The use of hospitals for caring for the sick spread in Europe before it did in the new country formed from the colonies.  So during the second half of the 1800’s groups from religious sects in Europe came to the United States for the purpose religious freedom and caring for the poor.  This resulted in a significant increase in the number of  hospitals.  The most common were Catholic based and run, staffed by nuns.  SSM Healthcare (St. Louis, MO) is just one of many Catholic Healthcare Systems that were established.  Other religious groups followed suit.

Cities, counties and states set up hospitals to care for the poor.  They became known as “charity hospitals”.  Two of the more famous are Cook County Hospital in Chicago and Ben Taub General Hospital in Houston, but they were prevalent in many cities.

In order to improve access to healthcare and allow hospitals access to funds for construction Congress passed the Hill-Burton act.  Those organizations using Hill-Burton funding were required to give a “reasonable amount” of charity care.

As charity care facilities became overwhelmed, Congress enacted “anti-dumping” laws making it illegal to transfer emergency patients to county facilities based on the patients lack of financial resources.  Failure to comply with those restrictions was grounds for exclusion from the Medicare and Medicaid programs.

Community Health Centers have existed for some time.  Their primary purpose is to allow healthcare access to those who lack insurance or have Medicaid coverage.  The Federal  Government has acted multiple times in the recent past to strengthen this system.

 In recent years there has been a move to establish “free clinics” offered by volunteers that are shielded from malpractice suits by “Good Samaritan” laws.  That trend continues as individuals of faith and good will see this as a way to practice their faith.  An example of such a clinic exists in Chillicothe, OH.
 
Under the previsions of the Medicare and Medicaid programs hospitals who accept patients from those programs must offer charity care and post their charity care guidelines.  Failure to comply can result in organizations' exclusion from those programs.

So access to healthcare for the poor has been a consideration since before our nation was founded.  And access has been improved over the centuries.  The question has always been the type of access and the ability of the Nation to support it.
 
While the rallying cry of those supporting universal healthcare is "the richest Nation in history can afford it" the truth might be that the "most indebted Nation in history" may have reached the limit on what it can afford?
 
 

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