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The total reported value of CHS's community benefit during 2009 was $839 million.
This chart reflects the major categories of "community benefit" recognized by the North Carolina Hospital Association. The figures are based on actual costs, not charges. The overall total represents the collective value of benefits attributable to the total enterprise that includes Carolinas Medical Center, 10 other CMC hospitals in greater Charlotte, and 18 other affiliated medical centers in North and South Carolina.
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Primary Enterprise
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CHS Enterprise
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| Cost of charity care provided to indigent patients |
$105 million
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$148 million
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Costs of discounts extended to uninsured patients
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$15 million
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$34 million
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Bad debt costs by patients who do not pay for services
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$76 million
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$151 million
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Losses incurred by serving Medicare patients*
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$186 million
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$265 million
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Losses incurred by serving Medicaid patients*
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$85 million
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$137 million
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Services that meet a strong community need, such as psychiatric care, but do not pay for themselves and would typically be cut based on financial considerations alone
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$9 milllion
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$16 million
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Costs of medical education and research;** plus costs of non-billed medical services, and cash and in-kind contributions by CHS to local nonprofits and charities
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$78 million
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$88 million
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Total value of uncompensated care and other community benefits provided by CHS facilities
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$554 million
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$839 million
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* Medicare and Medicaid programs do not reimburse hospitals in a manner that compensates for the actual cost of treating their beneficiaries. Hospitals cannot turn these patients away or negotiate higher reimbursements. Government payers recognize this fact and expect hospitals to make up the difference through efficiencies and from other revenue sources. The financing of this unpaid government debt is considered a community benefit.
** Carolinas Medical Center operates Carolinas College of Health Sciences, Mercy School of Nursing and Cannon Research Center. It also provides graduate medical education for more than 240 physicians in 18 medical specialties and sub-specialties. Its physicians and staff also take a leading role in conducting hundreds of clinical studies to test new medicines and treatments in a variety of specialties such as cardiology, neurology, oncology and pediatrics. The net loss from these programs is considered a Community Benefit.
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