Charity and Uncompensated Care

The above chart shows the growth of charity and
bad-debt write-offs over the past seven years.
Charity Care is the total of charges written off by WellSpan to provide
medical services to those patients who have demonstrated their inability to pay
their bills. Bad Debt is the total
of charges written off by WellSpan for services provided to patients who have
not paid their bills and who have demonstrated their inability to pay.

Aside
from the direct write-offs of charges (as seen in the Charity and Bed Debt
Write-off chart), another measure of uncompensated care is the difference
between payment received and the actual cost of providing care. The
Medicare and Medicaid programs pay WellSpan far less than it costs to provide
care to our Medicare and Medicaid patients. The graph above displays this
shortfall in payment relative to costs for Medicare and Medicaid. Since
we receive no payment for charity or bad-debt services, the amounts shown
on the above graph are the actual costs to provide services to charity and bad
debt patients. For each of the past three years the shortfall in payment
relative to costs for these four categories of patients has been greater than
$50 million.