Policymaker Issue Briefs
No. 7
July, 2003

CT Hospital Free Bed Funds - 2002

21 Connecticut hospitals have access to a total of $96,812,099 to cover the costs of caring for needy uninsured and underinsured patients

The funds were donated, often decades ago, specifically for the purpose of covering the costs of care for those who cannot pay their bills. The funds are specific to each hospital and not evenly distributed– Hartford and Yale-New Haven Hospitals have the largest funds at $42,623,125 and $23,524,093 – together they have 70% of the total. Eleven CT hospitals have no free bed funds.

CT hospitals with free bed funds spent 5.2% of the aggregate balance in 2002. Six hospitals spent nothing; another three spent under one percent of their balance. Hartford Hospital spent 6.23% and Yale-New Haven spent 2.43%.

Doesn't the state reimburse hospitals for care provided to the uninsured?

Yes, the state reimburses hospitals for the costs of uncompensated care, as well as Medicaid underpayments, through the DSH program. In FY 2002, Connecticut reimbursed hospitals $151,729,042under DSH. Those payments do not take into account which hospitals have free bed funds.

Connecticut Hospital Funds for Indigent Care/Free Beds FY 2002

Bottom line: Some Connecticut hospitals have significant resources to cover the costs of care for the uninsured that they are not using, while collecting millions in state dollars for that care

Sources: OHCA, DSS unpublished reports