Will Catholic Hospitals Survive without Government Reimbursements?

Abstract

This brief essay will begin to address the feasibility of operating a Catholic healthcare system without reimbursement from government healthcare programs such as Medicare and Medicaid. This question stems from the recent ACA/HHS “Nondiscrimination in Health Programs and Activities” final rule.

Summary

The average hospital in the United States receives 40-50 percent of its net revenues from governmental sources. Participation in Medicare is contingent upon the hospital having a Medicare provider agreement. Participation in other governmental programs (Medicaid) as well as most commercial insurance is also contingent upon that agreement. Hospitals, including “Catholic” hospitals, cannot survive without a Medicare provider agreement. That agreement may be terminated for non-compliance with Medicare and other governmental regulations such as the recent ACA/HHS “Nondiscrimination in Health Programs and Activities” final rule, which could require “Catholic” hospitals to provide services which violate moral principals of the Church.