Nebraska Hospital Association says costs to provide care outpacing payments

Posted at 6:55 PM, May 10, 2023

OMAHA, Neb. (KMTV) — It's National Hospital Week and the Nebraska Hospital Association is taking the opportunity to share how it provides for communities.

On Wednesday, the organization released its community benefits report highlighting the impact on communities.

Hospitals employ about 50,000 Nebraskans and pay out more than $3.6 billion in payroll and benefits. They also provide about $1.4 billion in community benefits combined every year, including traditional charity care, but hospitals also need to subsidize shortfalls from public programs.

“In our state, we've seen with the Medicaid program, a dramatic increase for our hospitals in the difference between the cost to provide Medicaid services and the amount being reimbursed," said NHA President Jeremy Nordquist.

He says in 2019, Nebraska hospitals lost about $224 million providing Medicaid services. In 2021 the amount grew by about 60%. He says the cost to provide care is growing faster than payment for services.

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