Study Says University Health, Public Private Hospitals Bring Big Money
An economic impact study commissioned by BRF shows that University Health and other public-private hospitals boosted the state's budget by 2.7 billion dollars. The study took a look at how the hospitals have performed since privatization in 2013.
University Health generated the most money out of the 8 medical facilities, being responsible for 902 million dollars of the 2.7 billion. The study also said that since privatization, the hospitals have been able to provide better service and cut down on wait times.
According to the study, after the facilities transitioned from charity hospitals to public-private partnerships, there were two new revenue sources created for the state: lease payment and payments to physicians which are eligible for FMAP payments. The state also saves money because the private partners are paying for capital expenditures that used to come out of the state's treasury.
Here is how University Health's contribution to the state breaks down according to the study:
- $383.2 million in lease and FMAP payments to the State
- $461.1 million in physician FMAP payments to the State (41 percent of all physician FMAP payments made came from UHS)
- $58.2 million in capital expenditures savings to the State (41.5 percent of all capital expenditures savings came from UHS)