Finance and Reimbursement

Connecticut hospitals serve as the healthcare safety net for their communities, caring for all regardless of ability to pay. Yet, because of continued deterioration in the financial health of these hospitals, their ability to ensure continued access to necessary healthcare services is threatened. Many factors impact hospitals' financial viability.

  • In 2014, Connecticut hospitals provided $1.3 billion in unreimbursed care* and uncompensated care to patients, including those covered by state and federal programs that do not pay for the full cost of care. *(The shortfall resulting from Medicare and Medicaid paying hospitals less than the cost of care for beneficiaries of public programs.)
  • Financial losses to hospitals from inadequate Medicaid reimbursement are growing rapidly: from $403 million in FY10 to $710 million in 2014. 
  • Rising costs acquiring advanced technology, some of it related to healthcare reform, affect all hospitals. Connecticut hospitals are investing millions of dollars in health information technology to modernize patient records, make the system more efficient and improve patient care.
  • The lack of capital funds to update and improve facilities is a growing concern.
  • Providing charity care for individuals who lack insurance or the ability to pay for their care also affects hospitals financially. In 2014, hospitals in Connecticut spent $247 million on uncompensated care, $129 million in charity care and another $117 million that hospitals had to "write off" for patients who couldn't pay.

Connecticut hospitals remain in fragile financial health. The fundamental problem remains that the constant gap between current cost and payment is impairing the ability of Connecticut hospitals to meet today's obligations and prepare for tomorrow.

Reports and Publications

2016 Community Benefit Report

2016: Connecticut Hospitals Today

2016 Economic Impact Report

CCEA Report: Investing in Hospitals: Projecting Economic Impacts 2016-2013: Study 1
Direct Investment

2015 Community Benefit Report

2015 Community Benefit Report Infographic

2014 Economic Impact Report

2014 Economic Impact Report Infographic

2014 Community Benefit Report Infographic

2013 Community Benefit Report

2013 Economic Impact Report

Resources and Links

Centers for Medicare and Medicaid Services

Office of Health Care Access