Summary of the “Bigger Piece of the Pie”

The number of all hospitals in the country is declining. Since 1975, there was a 1/6 less on the total number of hospitals. Investor owned facilities is shortly on the rise.From the year 1993 it started to spring high until 1997 and then there was an additive decrease afterwards but it continues to rise up to the year 2003. By the end of 2003, investor-owned hospital comprised 16% of the nations community hospitals. frequent hospitals are also diminishing in numbers as soundly as the non- for profits which decline more than 10 %.It is a go on long term decline that was neutralized by the 2002 figure wherein there was a slight increment. According to observers it will likely to remain shelter in the next coning years or will decline slightly. This gutter be explained by the infeasibility of small hospitals commented by the professor and managing director of the health policy and administrative division for the School of Public wellness at the University of Illinois Chicago. More patients prefer to go to large hospitals which were of their driving distance. renewing of non-for profit hospitals to for-profit hospital is also outpacing.The biggest factors remains a access to capital-investor-owned irons have it, while access is much more varied for not for profit systems. Many of the broad measures of credit quality, such as annual median figures for profitability and debt coverage but the prosperity is not logical throughout the sector even if many are performing better. Investor owned hospitals are squeezed with swingeing debt expense but they were able to attract paleness and debt capital. Private firms were attracted in order to recapitalize the companies. Hospitals are also in nap regarding reimbursement of high commercial insurance companies.Due to the high rates of the hospitals, the insurers were prompted to bid for a double digit percentage increase premiums for employers. Facing a quartern year of double-digit premium hikes, companies h ave been getting tough this year, pushing a lot more of those costs back onto their employees in the form of higher(prenominal) co-payments and different cost-sharing arrangements.Recognizing the limitations of those tactics, the survey found employers looking to longer-term solutions and possible government interference to head off the unrelenting increases. If this continues, employers may drop coverage and push more of their costs to employees, thus making an even more bad debt for the hospitals.However, if they decide to lower the premium increase, they would not be able to pressurize the reimbursements the way the hospitals are used to. Meanwhile, the pressure is now building up for not for profit hospitals regarding charity tutorship. It is an emerging issue whether or not the not-for-profit hospitals exert pressure on for-profit hospitals to provide charity plow and whether for-profit hospitals fight down differently than not-for-profit hospitals to managed care pressur es and hospital competition in providing charity care.Nowadays, a mixed ownership marketplaces, for-profit hospitals provide significantly less charity care as not-for-profit hospitals in the market provide more. Unexpectedly, for-profit hospitals were not more influenced by price competition than other hospitals with respect to charity care. Having a extraordinary role in providing charity care may justify move tax exemption for not-for-profit hospitals and enhance interest in payment and other policies with regard to conversions to pick up that not-for-profit hospitals continue to be represented in market areas.I think the effect of these increases reflected our today economic climate. As for the charity care of the not-for-profit hospitals, I wonder if its their way of breaking tax and organism exempted in paying a large amount. A report by the Internal Revenue Service in July found that not-for-profit hospitals nationwide quit widely in how they report and define their comm unity services. I conceive that the lack of consistency and uniformity makes it difficult to assess the hospitals compliance with the ongoing law. I think, the changes brought by the IRS would make it easier to compare hospitals and also would help ensure greater accountability.ReferencesCrenshaw, A. (2004). Health Insurance Costs Keep Rising. Retrieved on February 29, 2008 from http//www.washingtonpost.com/wp-dyn/articles/A8287-2004Sep9.html