Bad debt, charity care costs fall for Minnesota hospitals

Rising numbers of Minnesotans with health coverage have helped drive down uncompensated care costs for hospitals to an eight-year low, the Minnesota Department of Health said Monday.

Charity care and bad debts — the two components of uncompensated care — fell significantly in 2015, from $305 million to $268 million, according to the department's analysis. Ninety-seven hospitals saw a decline in uncompensated care costs while 34 showed an increase. Hennepin County Medical Center was the largest provider of uncompensated care followed by the two Mayo Clinic hospitals in Olmsted County.

Officials noted that some 213,000 more Minnesotans had health insurance in 2015 compared to 2013, the year when government-sponsored insurance marketplace exchanges began operating as part of the federal Affordable Care Act. The state's uninsured rate fell to 4.3 percent in 2015, down from 8.2 percent in 2013.

Uncompensated care decreased for both insured and uninsured patients in 2015, the department added. Charity care dropped by $18.7 million from 2014 to 2015, a 15 percent decline, while bad debt declined by $18.5 million or 10 percent.

"While we still have significant challenges to ensure that all Minnesotans have access to high-quality health care at affordable rates, this drop in charity care and bad debt is a positive sign that reflects our progress in reducing the number of Minnesotans going without coverage," Minnesota Health Commissioner Dr. Ed Ehlinger said in a statement.