Community Benefit

Community Benefit

Holiday Cheer

During 2012, Carolinas HealthCare System invested more than $1.25 billion in community benefit initiatives that enhanced not only the quality of medical care but the quality of life in communities served by its facilities and personnel.

"Community benefit" is an industry term that refers to the total cost of providing financial assistance to uninsured and underinsured patients; subsidizing Medicare and Medicaid reimbursements; and financing other services that address vital needs but do not pay for themselves. These include such things as research, education, community health improvements, community building initiatives, behavioral health and community health clinics. The impact of these public service activities in 2012 was extraordinary.

Costs of financial assistance to uninsured patients $228 million
Costs of discounts extended to uninsured patients $56 million
Bad debt costs by patients who do not pay for services $188 million
Losses incurred by serving Medicare patients $445 million
Losses incurred by serving Medicaid patients $144 million
Costs of community-building activities and other services that meet a strong community need but do not pay for themselves and would normally be cut based on financial considerations alone $58 million
Costs of professional medical education, research, and cash and in-kind contributions to local nonprofits and charities $130 million
The total value of uncompensated care and other community benefits during 2012 was $1.25 billion.

This chart reflects the major categories of community benefit recognized by the North Carolina Hospital Association. Figures are based on actual costs, not charges. The $1.25 billion figure represents the collective value of benefits attributable to the Total Enterprise during 2012, including Carolinas Medical Center, 11 other Primary Enterprise hospitals, and 20 other NC and SC medical centers and hospitals affiliated with Carolinas HealthCare System. In order to maintain accurate year-to-year comparisons, Cone Health facilities are not included in this total.