Are patient collections worsening?

Reed Abelson provides another report on the impact of the economic downturn on healthcare in the New York Times.
Hospitals are reporting a declines in the percentage of patients able to pay for care they need, from knee replacements to hernia repairs to weight-loss surgeries. If true, the loss of these inpatient revenues — as a result of economy-driven concerns — will be a big problem both for physicians in the relevant specialties and hospitals. (Although the article focuses on hospitals, the drop-off has parallel serious negative implications for physicians who depend on steady streams of patients needing these procedures.)

Under the Emergency Medical Treatment and Active Labor Act (EMTALA), hospitals are required to provide emergency care to patients who show up, at least to stabilize their condition. Hospitals depend on subsidization from more lucrative procedures to pay for the emergency care for non-paying patients. An increase in the percentage of patients who can’t afford to pay doesn’t bode well for the future of Southern California hospitals, many of which are already stretched financially.