Report from trade group points out economic benefits of hospitals in state

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The Delaware Healthcare Association released its 2020 Community Benefits Report, a biennial report of the industry’s public health and economic benefits.

According to the report,  Delaware hospitals and health systems provided nearly $715 million in community benefit as of fiscal 2018.

“Delaware’s hospitals have a tremendous impact on the health and economy of the State. In a state without any public charity care hospitals, our members are the safety net healthcare providers. High-quality healthcare services are delivered to everyone who walks through our front doors, regardless of ability to pay. Delaware hospitals invest millions of dollars in initiatives and services that aim to advance not only the health of our population, but also to address unmet needs in the community,” said Wayne A. Smith,  CEO of the Delaware Healthcare Association. “Hospitals also are key economic drivers for Delaware, offering tens of thousands of well-paying jobs that translate into additional economic benefits.”

The state’s mainly nonprofit hospital systems have long been cited as one factor in Delaware’s high health care costs. Critics claim that their large market shares limit competition.

Of late, hospital systems have taken a financial hit in efforts to combat coronavirus as elected surgeries and other services were postponed for months. Many people also stayed home despite symptoms of serious diseases 

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The health care community cites high rates of chronic diseases,  sedentary lifestyles  and an aging population as factors that have contributed to the high costs.

The report from the association finds that in 2018, Delaware hospitals contributed nearly $715 million statewide in community benefit spending. This includes:

  • $543 million in unpaid costs of patient care, such as charity care ($52.8 million), bad debt ($53 million) and unpaid cost from Medicare, Medicaid, and Tricare ($437.3 million); and,
  • $171.8 million in community benefit services and programs that aim to advance health or address unmet needs in our communities.

Delaware hospitals spend over $3.2 billion on goods and services from other businesses. These goods and services from other businesses create additional economic value for the community. Each hospital job supports about two additional jobs and every dollar spent by a hospital supports almost $2.00 of additional business activity. The effect of hospital expenditures on total state economic output is over $6 billion.

  • Hospital Jobs: 23,068
  • Average Salary: $70,550
  • State and Local Taxes Paid: $61,535,848
  • Hospitals support 45,726 jobs in Delaware (10.23% of jobs in the State) and generate $6,041,665,769 in economic activity

The hospitals and health systems that provided data for this report include: Bayhealth (Kent and Sussex Campus), Beebe Healthcare, ChristianaCare (Wilmington and Newark hospitals), Nanticoke Memorial Hospital, Nemours/A.I. DuPont Hospital for Children, and Saint Francis Healthcare. The Delaware Healthcare Association biennially collects data to quantify total community benefit contributions from all Delaware hospitals.

The report is available at this link: https://www.deha.org/Reports/Community-Benefits/Documents/Community-Benefit-Report-2020-(FY2018) 

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