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Simplify your charity care program

Patient Access Weekly Advisor, November 7, 2007

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Jeff Shutak has served as the PFS director at The Memorial Hospital (TMH) in North Conway, NH, for 10 years, and has employed several charity programs at the 25-bed facility nestled in the Mount Washington resort area. He believes that TMH has finally developed a program that suits both the needs of the patient population and the hospital's charity budget.

When its simplified charity care program failed in December 2005, TMH went back to its lengthy application process and again required documentation, such as bank statements, car registrations, tax returns, and pay stubs. The patients who enjoyed the previous no-hassles approach didn't understand the change. "We just explained that in order for us to meet the needs of the truly needy, we had to tighten things," Shutak says.

This, however, was just a temporary bandage for TMH until it could find a better solution for its population. Now the facility is taking another stab at a customer-friendly approach to charity care. This time, TMH is widening the reach of its charity care program with more flexible eligibility requirements.

Beginning on July 1, anyone with $200,000 or less in assets would qualify for the assistance program. Before July 1, only those with $100,000 or less in assets qualified. Additionally, those with $300,000 in net assets qualify for a 30% write-off, and those with $400,000 qualify for a 15% write-off.

TMH also expanded its net income guidelines. Right now, TMH is offering the assistance program for those at 200% of the federal poverty guidelines (FPG). Starting on July 1, TMH is expanding that to 250% of the FPG. Those at 300% of the FPG qualify for 30% off their bill, and those at 400% get a 15% discount.

TMH decided to rethink its charity requirements after completing statistical analyses on the people it had denied during the previous fiscal year. "We found that more and more people were falling into that percentage cap. We just didn't come up with an arbitrary figure," Shutak says. "We wanted to help everyone, even the people with insurance who are caught in the middle."

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