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Hospitals seek Rx for bad debt Nonpayment from insured, growing charity care a double whammy By TIMOTHY MAGAW tmagaw@crain.com
On top of exploding charity care rolls, Northeast Ohio hospitals are stomaching increased volumes of unpaid bills from their insured patients — the base that traditionally generates the bulk of hospital revenues. To get a handle on their escalating bad debt, hospitals are beefing up
their front-end operations in hopes that stronger communication with patients before they go under the knife could improve the prospects that they’ll be paid. However, there’s only so much providers can do to hold down their mounting bad debt expenses. “It’s a struggle and a two-edged sword,” said Bill Ryan, president and CEO of the Center for Health Affairs, an advocacy group repre-
senting Northeast Ohio hospitals. “If hospitals acted like cable or utility companies, they could shut the power off,” Mr. Ryan said. “But they can’t say, ‘You’re on the bad boy list’ and refuse to give you care anymore.” The reasons people don’t pay their bills vary. However, hospital officials attribute much of the growth in bad debt over the last four years to a boom in high-deductible
City plans per-trip fee for drivers at airport
– Bill Ryan, president and CEO, Center for Health Affairs
Welcome to the club Dan Gilbert’s purchase of the Cleveland Gladiators expands the Cavaliers’ owner’s ability to promote all of his Cleveland properties. PAGE 3 ALSO: ■ The volume of commercial real estate sales rose in 2011. PAGE 3
insurance plans and a dismal economy that has left many patients who don’t meet the hospitals’ charity care guidelines unable to meet their financial obligations. See DEBT Page 5
SMOKES TAX FIRES UP ARTS BACKERS They’re already preparing their case for a ballot renewal issue in 2015 By JAY MILLER jmiller@crain.com
Officials want to trim airlines’ landing costs
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henever he walks out of his office, Thomas Schorgl sees a 10-year timeline he posted in 2007 with ever-shrinking suns. Each sun represents a year from 2007 to 2016, and the first five suns already are X’d out by Mr. Schorgl, longtime president and CEO of the Community Partnership for Arts and Culture, a foundationbacked nonprofit that supports arts groups in Northeast Ohio. Likewise, Karen Gahl-Mills, executive director of Cuyahoga Arts and Culture, the public
By JAY MILLER jmiller@crain.com
The city of Cleveland is planning to boost substantially the fees it charges limousine companies and hotel and off-site parking lot operators who pick up and drop off passengers at Cleveland Hopkins International Airport. The fee for taxicab drop-offs by cab companies that don’t participate in the airport taxi program also would rise. Legislation introduced Jan. 9 would allow the city to charge Smith anyone who provides ground transportation to and from the airport a per-trip fee for access to the airport terminal. Ricky Smith, the city’s director of port control, said limousine companies, off-site parking operators and other transportation providers now pay a flat fee of $550 a year per vehicle to use the airport. The legislation has not yet been
“If hospitals acted like cable or utility companies, they could shut the power off.”
INSIDE
See ARTS Page 9
BEST FOOT FORWARD Two groups that support arts and culture in the region are working now on getting their messages out on the value of an excise tax on cigarettes before it expires in 2016. Among their talking points: ■ Musicians, music-related organizations, the recording industry and others had an $840 million impact on Northeast Ohio’s economy in 2009, according to the Community Partnership for Arts and Culture. ■ 7.7 million visits to organizations financed by Cuyahoga Arts and Culture in 2009 and 23,971 activities offered by grant recipients. ■ A PBS documentary reporting that the $17 million distributed yearly by Cuyahoga Arts and Culture ranks the agency third nationwide among public arts supporters.
STEVE B ENNETT ILLUSTR ATION
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HIGHER EDUCATION College presidents now are more involved in the fundraising process ■ Page 11 PLUS: INNOVATORS ON CAMPUS ■ AKRON IN LAKEWOOD ■ & MORE
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 4