Research commissioned by 340B Health found that 340B DSH hospitals spent more on uncompensated and unreimbursed care during COVID-19's first year than the year before despite worsening operating margins.

340B DSH Hospitals Upped Services to the Poor During Pandemic’s Brutal First Year, 340B Health Says

340B disproportionate share hospitals provided more uncompensated and unreimbursed care during 2020 despite a decline in operating margins associated with the COVID-19 pandemic, a new hospital-funded study shows.

The paper by Dobson DaVanzo for hospital group 340B Health compared 340B DSH hospitals with non-340B hospitals on operating margins and provision of uncompensated and unreimbursed care during the pandemic’s first year, using data from Medicare cost reports hospitals filed in 2019 and 2020. The study defined uncompensated and unreimbursed care as charity care, financial assistance, bad debt, and public program shortfalls. It said that sum is “a measure of a hospital’s provision of services to individuals with low incomes.”

340B disproportionate share hospitals provided more uncompensated and unreimbursed care during 2020 despite a decline in operating margins associated with the COVID-19 pandemic, a new hospital-funded study shows.

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