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SUMMARY OF CHARITY CARE POLICY
Community Benefit
Cleveland County HealthCare System considers it a privilege to give back to our community.
The economic impact of a hospital is felt locally, through direct spending on such things as payroll, purchase of goods and services, and the financing of new construction. A significant purchaser of goods and services, we also contribute to the vitality and staying-power of many local businesses.
Cleveland County HealthCare System also impacts Cleveland County and surrounding communities through our “community benefit”. This term describes the broad variety of discretionary, benevolent activities that impacts not only healthcare but education, economic development and public welfare.
Our primary community benefit is access to care for those in need, regardless of their ability to pay. Community benefit also includes such things as education, prevention initiatives, screenings, support groups and special health education events, all money-loosing services, living our vision to champion health in our community. It also includes the value of employees’ personal involvement in civic, charitable or professional organizations.
Cleveland County HealthCare System (CCHS) has a long history of being a good corporate citizen, stemming back to its 1920 roots as Shelby Hospital, to a healthcare system that includes Cleveland Regional Medical Center, Kings Mountain Hospital, Crawley Memorial Hospital and Cleveland Pines Nursing Center.
CCHS is the second largest employer in Cleveland County and leadership and staff are known to be integral to the community’s efforts in economic development, coalition building, and collaboration.
Following are some statistics that put CCHS’s community benefit into perspective:
- These amounts reflect the major categories of community benefit recognized and monitored by the North Carolina Hospital Association, and are based on actual costs rather than charges.
- They include the collective value of community benefits attributable to Cleveland Regional Medical Center, Kings Mountain Hospital and Cleveland Pines Nursing Center.
- These figures are from calendar year 2007, rounded to the nearest thousand or million dollars.
Cost of charity care provided to indigent patients...$4.9 million
Costs of discounts extended to uninsured patients...$1.8 million
Bad debt costs by patients who do not pay for services...$8.9 million
Losses incurred by serving Medicare patients*...$12.7 million
Losses incurred by serving Medicaid patients*....$9.6 million
Services that meet a strong community need for difficult to find medical professionals $ 800 thousand
Costs of medical education plus costs of non-billed medical services, and cash and in-kind contributions by CCHS to local nonprofits and charities...$1.9 million
Total value of uncompensated care and other community benefits provided by CCHS facilities...$40.5 million
This $40.5 million represents nearly 21.1% of the combined total expenses for the CCHS enterprise, an amount which is high by national standards.
* Medicare and Medicaid programs do not reimburse hospitals in a manner that compensates for the actual cost of treating their beneficiaries. Hospitals cannot turn these patients away or negotiate higher reimbursements. Government payers recognize this fact and expect hospitals to make up the difference through efficiencies and from other revenue sources. The financing of this unpaid government debt is considered a community benefit.
In addition to the corporate community benefits outlined above, CCHS employees make invaluable contributions to the communities they serve by virtue of individual philanthropy and public service endeavors.
For example, during 2007, employees collectively made the following donations out of their personal funds:
United Way of Cleveland County...$282,630.23
Relay for Life (American Cancer Society)...$116,667.00
CCHS conducts numerous community educational programs on topics as diverse as bicycle helmet safety, diabetes management, CPR, control of chronic medical conditions, end of life decision making and baby sitter training. Employees participate actively in community-based projects such as books for students in need, Walk for Hope, holiday adoption of indigent, volunteers through the Community and Faith Nursing program as well as other civic and not-for-profit agency boards.
Finally, CCHS employees set an exemplary standard when it comes to giving back and being involved. During 2007, for example, it is conservatively estimated that hospital system employees donated more than 17,600 hours of time, collectively, to support charitable causes and nonprofit organizations.
Employees at all CCHS locations volunteer throughout their individual communities, making them better places to live, work and play. These investments of time and effort supplement all of the direct and indirect corporate investments which are made to enhance the quality and accessibility of healthcare services for all who need assistance.
Please click on this link for more information on CCHS charity care.
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