Texas hospitals are lifesavers in their communities. Fair, stable and adequate payment is key to meeting this mission.
Hospitals operate under unique economic, legal and regulatory circumstances. They need revenue stability to provide necessary healthcare services, invest in new technologies and advance the quality of the care they provide. Unfortunately, payment often fails to cover the full cost of care provided. And, by law, hospitals must treat and stabilize anyone who seeks care in their emergency departments, regardless of a patient’s insurance status or ability to pay.
Understanding hospital financing is a key part of being an advocate for Texas hospitals and their patients. Texas hospitals also support price transparency and believe in protecting patients from surprise medical bills as part of their commitment to fair and trustworthy healthcare pricing practices.
Hospital Finance 101
Texas hospitals provide care around the clock, but getting paid for that care can be complicated and often does not cover the full cost of providing it.
Health Insurance Burdens
Hospitals provide the lifesaving care Texans rely on while insurers increasingly shift costs and administrative burdens onto patients, providers and employers.
Medicare/Medicaid
Medicare and Medicaid provide a significant share of hospital patient revenue and changes to these programs are often consequential and critical to hospitals’ financial stability.
Charity Care and Community Benefit
Texas hospitals provide billions of dollars in charity care each year, with nonprofit hospitals also delivering essential community benefits as part of their charitable missions and legal obligations.
Facility Fees
Hospital outpatient payments (aka facility fees) cover the many people, services and resources used by hospitals to provide healthcare services to patients beyond the physician’s professional fee.
Workforce Pipeline
Texas’ rapidly growing and aging population is increasing demand for healthcare, making a strong healthcare workforce pipeline more important than ever.
Price Transparency
Texas hospitals support giving patients clear information about healthcare costs and protecting them from unexpected out-of-pocket bills.