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Press Release June 3, 1999 |
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SAN FRANCISCO, CA - The state Assembly Health Committee will hold a hearing next month on charity care at nonprofit hospitals. The committee will hold the hearing, "Guarding the Charitable Trust: Are Non-Profit Hospitals Meeting Charitable Obligations in the Competitive Environment of Managed Care?" in Los Angeles on Saturday, June 12, from 10 A.M. until 2 P.M. at Union Avenue School, 150 S. Earlington, Los Angeles. Representatives of Consumers Union, nonprofit publisher of Consumer Reports magazine, plan to testify at the hearing.
"Charity care at California hospitals is in need of emergency attention," said Julio Mateo, Jr. staff attorney at Consumers Union. "As nonprofit hospitals turn into for-profit companies or merge with larger nonprofit chains, charity care services are at risk."
"We applaud the Assembly Health Committee for addressing the pressing issue of hospital charity care, and we urge the Legislature and Governor to take action to improve care in underserved communities," Mateo said.
In a report issued earlier this month, Consumers Union found that hospital charity care declined in the absence of tight guarantees at California nonprofit hospitals that converted to for-profit corporations. The report, "White Knights or Trojan Horses? A Policy and Legal Framework for Evaluating Hospital Consolidations in California," analyzed ten California nonprofit hospital conversions that occurred between 1993 and 1998. The report also noted the increasingly common practice of mergers between nonprofit hospitals. Consumers Union believes such mergers should receive more stringent regulatory oversight, since their potential health impact can be as significant as conversions to for-profit companies.
In addition, Consumers Union recommends that the state Legislature strengthen the current law requiring hospitals to report the community benefits they provide. Currently, reports filed with the relevant state agency vary greatly in content and format. Instead, they should be comprehensive and use consistent methodologies so that they are meaningful to the communities where health services may be impacted.
[NOTE: This report is available in the Health Section of this web site.]
Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
