The deal involving Ochsner Health was arranged by Undue Medical Debt, a donor-funded organization that negotiates with hospitals, doctors' offices and ambulance services to purchase and erase the outstanding medical debt of those least able to afford it.
A growing number of Alabama hospitals may soon lose inpatient services, most notably obstetrical and mental health care, due to seeking financial assistance from a federal program that comes with strict regulatory requirements. Concerns over the trend were expressed Thursday by Alabama State Health Officer Dr. Scott Harris, who, during a meeting of the State Committee of Public Health, spoke to the growing number of hospitals seeking to participate in the federal program.
A group of 42 hospitals challenged the Biden administration over alleged permanent cuts made to Medicare reimbursement without congressional approval, echoing a similar lawsuit also filed this week. Hospitals involved in the complaint include Zuckerberg San Francisco General Hospital and Trauma Center, Santa Clara Valley Medical Center, and several facilities within the Trinity Health network across multiple states.
Arkansas hospitals had an estimated $18.045 billion impact on the state’s economy in 2022, according to the Arkansas Hospital Association’s “Economic Impact Report 2024.” The report found that hospitals provided or created 94,400 jobs. That includes 48,200 individuals employed and a total payroll of more than $4.3 billion. Those employees’ incomes generated another $8.1 billion in economic activity, creating another 46,200 jobs. The report said that 12% of Arkansas workers are employed by hospitals or other health care organizations.
On appeal, the appellants raised three points. First, they said the trial court erred in excluding the notarized affidavit and attached business records that were filed with the petition because they were filed with the petition and admissible. Second, they argued the trial court erred in excluding four exhibits on hearsay grounds. Third, the appellants argue the trial court erred in excluding two of those exhibits on best evidence grounds.
Reasons cited for the closures happening nationwide include declining birthrates, staffing shortages, increased costs, and Draconian antiabortion laws. An observer noted that hospitals that appear highly likely and easiest to close are often those most reliant on Medicaid, which reimburses at lower rates than commercial insurers, and obstetric unit loss, specifically, is more common among those units that serve a larger share of Black patients.