Simon Scholtz, Lawrence Memorial Hospital chief financial officer, will chat about the increase in money that local hospitals lose in providing health care to people who are unable to pay their bills and how that affect patients.

Moderator

Good afternoon. This is Dennis Anderson, managing editor of the Lawrence Journal-World. I will be moderating today’s online chat with Simon Scholtz, chief financial officer of Lawrence Memorial Hospital. Welcome Mr. Scholtz.

Simon Scholtz

Thank you for inviting me. I look forward to chatting with members of the Lawrence community.

Moderator

The Journal-World reported last week that Lawrence Memorial Hospital recorded nearly $17 million for uncompensated care in 2006, a 22 percent increase from 2005. What is the driving force behind the uncompensated care?

Simon Scholtz

Uncompensated care consists of a combination of accounts that qualify as charity and accounts that are unpaid and referred to a collection agency. The increase is in part due to the increase in uninsured patients and the amount due from the patient after insurance pays.

loislane

What kind of programs does the hospital have in place to identify and help people who can’t afford to pay their bills?

Simon Scholtz

LMH contracts with a company that will assist the patient in applying for many different types of programs that offer medical assistance. In addition, LMH has a financial assistance program that may qualify the patient for a partial or 100% discount on their hospital bills.

Moderator

How do patients learn about the financial assistance program?

Simon Scholtz

All uninsured Inpatients are visited for any third party assistance in their rooms. Any patient we know immediately can not qualify are given the financial assistance forms. All other patients are asked to call the business office to discuss payment arrangements. Financial Counselors inform patients of the inhouse program. Future plans include posting the financial assistance policy on the LMH website with necessary forms.

Bone777

Do you use a different charging scale for people with insurance compared to those without any, in an attempt to recoup some of your losses?

Simon Scholtz

NO! The same charge amount is used for the same service regardless of the patient’s ability to pay.

RalphGage

When you talk about uncompensated dollar amounts are those totals calculated on the basis of what an individual with no insurance would pay, or what the hospital would be reimbursed for the same treatment by an insurance company with which it had negotiated pricing?
Where is the equity in charging an individual without insurance so much more than someone with insurance?

Simon Scholtz

Both. LMH does allow patients who have insurance to apply for financial assistance on their balances after insurance pays. In addition, patients with no insurance who qualify for financial assistance may have the entire amount of the bill taken to charity.

Moderator

What funds does the hospital use to pay off the bills that go unpaid?

Simon Scholtz

A certain amount of dollars are budgeted each year as uncompensated dollars. Last year’s uncompensated dollars were higher than expected. This reduces the bottom line that would be available for future capital equipment and medical technology.

ASBESTOS

How much of this uncompensated care is delivered to illegal aliens? Dallas, Texas has since started billing the country of Origin for the health care costs of Citizens of other countries inside the United States illegally that require the requsite medical care.

Simon Scholtz

The percentage is very small. There are government programs that are available for reimbursement for some types of services. Some of the hospital’s patients receive reimbursement currently.

purplesage

I know a young man who came to ER with an extremely severe headache. He waited several hours, was given a CT scan and sent home with instructions to take Advil. The bill was over $1000.00. What about the use of high dollar testing equipment and the exorbitant charges which accompany it? My friend does not have the means to pay such a bill and, though he was seen, he did not really receive any help. Doesn’t this contribute to uncompensated care?

Simon Scholtz

There is no doubt that new medical technology increases medical bills. The hospital treats every patient who comes to the Emergency Room regardless of their ability to pay. So yes, if this young man qualifies for financial assistance or the account is referred to a collection agency then this account does contribute to uncompensated care.

i_tching

Do you support the universal-coverage, paperwork-simplifying, cost-managing, middleman-reducing concept of a national healthcare program?

Simon Scholtz

It sounds ideal. However, LMH must stay focused on providing the best healthcare to the citizens of Lawrence and surrounding communities using the current healthcare system.

Moderator

We are out of time. I would like to thank our readers for their questions. I would also like to thank Mr. Scholtz for joining us this afternoon.

Simon Scholtz

Thank you for having me. I realize that this is a confusing subject with no easy answers. I have appreciated the opportunity to try to clarify the information that appeared in the Journal World article.