23 Aug WHAT IS THE PAYOR MIX – PRIVATE INSURANCE, MEDICARE, MEDICAID ETC. – AT EACH OF THE RURAL HOSPITALS? ARE THERE PARTICULAR OBSTACLES THAT THEY FACE OR ASSETS THEY ENJOY GOING FORWARD?
The payor mix in our region is tremendously challenging as we’ve highlighted repeatedly. We are disproportionately dependent on governmental payors (Medicare, Medicaid), and North Carolina has not expanded Medicaid. Please see the chart below which shows the payor mix for each of Mission Health’s rural hospitals.
We’ve addressed some of the many obstacles faced by rural hospitals in the prior question. With respect to assets or benefits that our rural hospital members will enjoy going forward, there are several:
- First is the scope and scale of HCA Healthcare. All Mission Health entities will benefit directly from the expertise, purchasing power, efficiencies, capabilities and learnings that HCA Healthcare brings to Mission Health. For example, just since 2013, HCA Healthcare has recruited 200 providers to its rural facilities in specialties including cardiology, general surgery and orthopedics. HCA Healthcare currently supports more than 100 rural clinics staffed by HCA Healthcare affiliated and employed physicians. They are committed to serving patients wherever they live — providing care sooner and closer to home.
- Second, Mission Health will forgive and eliminate nearly $80 million in debt owed to it by its member hospitals upon closing of the transaction. That’s an extraordinary, direct contribution to each local community, relieving them of payments that otherwise would have been required.
- Third, the successor foundation to be created as part of the transaction with HCA Healthcare will provide substantial benefits to these communities because they suffer from the same problems that the foundation has pledged to attack: the social determinants of health.