Carolinas HealthCare System

Community Benefit Statistics

The total reported value of Carolinas HealthCare System's community benefit during 2012 was $1.25 billion.

This chart below reflects the major categories of "community benefit" recognized by the North Carolina Hospital Association. The figures below are based on actual costs, not charges. The "primary enterprise" consists primarily of System operations in Cabarrus, Lincoln and Mecklenburg Counties. The "Carolinas HealthCare System's total enterprise" statistics represent the collective value of benefits attributable to both primary enterprise and other System-affiliated facilities in North and South Carolina.

Carolinas HealthCare System
2012 Community Benefit Summary (in millions)
System Enterprise
Costs of financial assistance to uninsured patients $228
Costs of discounts extended to uninsured patients $56
Bad debt costs by patients who do not pay for services $188
Losses incurred by serving Medicare patients* $445
Losses incurred by serving Medicaid patients* $144
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
Costs of professional medical education, research, and cash and in-kind contributions to local nonprofits and charities $130
Total value of uncompensated care and other community benefits during 2012 $1.25 billion
Total value of uncompensated care as a percentage of operating expenses 19.6 percent

*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 HealthCare System operates Cabarrus College of Health Sciences, Carolinas College of Health Sciences, Mercy School of Nursing and Cannon Research Center. In addition, the graduate medical education programs and fellowships at AnMed Health, Carolinas Medical Center and CMC-Union currently serve more than 300 physicians in more than two dozen specialties. In addition, Carolinas HealthCare System physicians and staff 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.

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 N.C. and S.C. medical centers and hospitals that were affiliated with Carolinas HealthCare System. In order to maintain accurate year-to-year comparisons, Cone Health facilities are not included in this total.

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