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Toward a high performance health care system for vulnerable populations: funding for safety-net hospitals
Toward a high performance health care system for vulnerable populations: funding for safety-net hospitals
Safety-net hospitals play an indispensable role in providing care to vulnerable populations. Yet, in the current economic environment, many safety-net hospitals face dire financial circumstances and struggle to provide care to growing numbers of low-income, uninsured, and Medicaid patients. This report, written on behalf of the Commonwealth Fund Commission on a High Performance Health System, examines the funding streams on which safety-net hospitals rely and suggests strategies--not simply to sustain these hospitals but to stimulate and reward high performance. These strategies include: increasing Medicaid rates (in states that have unreasonably low rates) to safety-net hospitals with the highest shares of Medicaid and uninsured patients and lowest shares of privately insured patients, contingent upon meeting performance benchmarks; targeting Medicaid and Medicare disproportionate share hospital payments to hospitals that serve uninsured patients; and supporting safety-net hospitals' access to the capital they need to implement large-scale delivery system reforms.
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