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Teaching Hospitals: Current and Future Challenges Final Charts September 21, 2009

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umberto-potter
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This document provides an in-depth analysis of the current and future challenges facing teaching hospitals in the U.S. It covers their critical roles in offering specialized and non-hospital services to local communities, their rising costs in uncompensated care, and the significant Medicare contributions supporting graduate medical education. It also presents projections for physician shortages and discusses the economic challenges that teaching hospitals encounter, including the declining Medicare margins and necessary cutbacks. Overall, it highlights the profound impact of teaching hospitals on healthcare delivery and the economy.

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Teaching Hospitals: Current and Future Challenges Final Charts September 21, 2009
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  1. Teaching Hospitals: Current and Future ChallengesFinal ChartsSeptember 21, 2009

  2. Highly specialized services are concentrated in teaching hospitals. Chart 1: Percent of Hospitals Offering Specialized Services, Teaching vs. Non-teaching, 2007 Source: Association of American Medical Colleges. (February 2009). Key Facts About Teaching Hospitals.

  3. Teaching hospitals offer important “non-hospital” services to benefit their communities. Chart 2: Percentage of Teaching Hospitals Offering “Non-hospital” Services, 2007 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2007.

  4. Teaching hospitals provide a significant and growing amount of uncompensated care. Chart 3: Uncompensated Care Costs (in Billions), Teaching Hospitals, 2000 - 2007 Source: Avalere Health analysis of American Hospital Association 2000 - 2007 Annual Survey Data. Uncompensated care costs include charity care and bad debt.

  5. Medicare payments for graduate medical education totaled an estimated $8.4 billion in FY2008. Chart 4: Medicare Special Payments to Teaching Hospitals, 2008 Direct Graduate Medical Education $2.70 B Indirect Medical Education $5.74 B Source: Centers for Medicare & Medicaid Services, Office of the Actuary, July 2008. FY = fiscal year

  6. State Medicaid programs also contribute to graduate medical education. Chart 5: Number of State Medicaid Programs that Contribute to Graduate Medical Education, by Type of Contribution, FY 2005 (1) (1) Source: Henderson, T.M. (August 2006). Medicaid Direct and Indirect Graduate Medical Education Payments: A 50-State Survey. Completed for the Association of American Medical Colleges. (1) Includes payments directly to teaching programs and recognized in managed care rates. FY = fiscal year

  7. Physician demand will outpace supply - even without expanded coverage - and residency caps limit ability to fill gap. Chart 6: Projected Physician Shortage, 2009 - 2025 124,400 Source: Association of American Medical Colleges. (February 2009). The Complexities of Physician Supply and Demand: Projections Through 2025.

  8. Teaching hospital overall Medicare margins have steadily declined since 2000. Chart 7: Average Teaching Hospital Medicare Margins, 2000-2007 Source: Health Forum, American Hospital Association, 2007 Annual Survey. Includes all hospitals with intern-to-bed ratios greater than zero.

  9. Teaching hospitals are making cutbacks to address economic challenges. Chart 8: Percent of Teaching Hospitals Making Changes in Response to Economic Concerns Since September 2008 Source: American Hospital Association. (April 2009). The Economic Crisis: The Toll on the Patients and Communities Hospitals Serve.

  10. Cuts to teaching hospital resources could have ripple effects for other sectors of the economy. Chart 9: Direct and Total Effects of Teaching Hospitals on the U.S. Economy, 2007 Direct Effect Total Effect Impact of Teaching Hospitals on Payroll and Benefits Impact of Teaching Hospitals on Economy Source: Avalere Health analysis of American Hospital Association 2007 Annual Survey data for teaching hospitals.