Derek Daly CEO | Tomah Memorial Hospital Inc.
Derek Daly CEO | Tomah Memorial Hospital Inc.
A recent report from the Wisconsin Hospital Association (WHA) highlights the significant contributions of the state's hospitals, which provided $2.3 billion in community benefits and charity care during Fiscal Year 2023. The WHA 2024 Community Benefit Report outlines how nonprofit hospitals and health systems in Wisconsin support their communities beyond patient care, often incurring financial losses.
"Wisconsin’s hospitals and health systems not only provide outstanding patient care, but they also provide many valuable community services that otherwise wouldn’t exist," stated Eric Borgerding, WHA President and CEO.
Of the total community benefits, $1.6 billion accounted for unfunded Medicaid losses, marking a $225 million increase from the previous year. These losses were alongside $168 million in charity care, $109 million in subsidized health services, and $301 million in health professions education. Borgerding expressed concern over rising Medicaid shortfalls and other financial pressures impacting hospital services and community programs. "The recent closure of two hospitals in the Chippewa Valley illustrates the real-world consequences when financial challenges reach a breaking point; and communities lose critical access to care and essential non-hospital services."
Tomah Health contributed $5.85 million in community benefits and charity care last year. Joe Zeps, Tomah Health's chief financial officer, emphasized their commitment to offering necessary services for community well-being despite potential financial impacts: "Our board of directors is committed to maintaining these services as long as they are necessary, and we would never want anyone to forego medical care because they are concerned about receiving a large bill."
With 96% of Wisconsin hospitals operating as nonprofits reinvesting locally, WHA officials stressed these contributions' importance for essential community programs that might not exist otherwise. Borgerding added: "Addressing inadequate Medicaid reimbursement rates is crucial if we want to maintain the high-quality care and essential community programs that Wisconsin families and employers rely on." He urged state leaders to ensure sustainable funding for hospitals supporting workforce development, economic stability, and overall well-being.
The report includes various stories from member hospitals like Tomah Health. Eric Prise, Tomah Health's marketing director, highlighted their Community Outreach Department's role: "A great example of our work is the number of informative ways our staff taught children and parents during this year’s National Night Out event." He noted how staff engaged with attendees by sharing information on stress reduction techniques and proper needle disposal.
The full 2024 Community Benefits Report is available online.