Uncompensated Care refers to medical services rendered by healthcare providers that are not reimbursed by the patient or insurance companies. It typically includes both charity care and bad debt. Charity care encompasses services provided to patients at reduced or no cost based on their financial status, while bad debt occurs when patients are expected to pay but do not.
Uncompensated care is a critical element in the U.S. healthcare system, impacting hospitals’ financial health and patient access to necessary services. This form of care represents a major cost for healthcare providers, influencing overall healthcare costs and resource allocation. Managing uncompensated care effectively ensures that healthcare facilities can continue to provide essential services to all community members, including vulnerable populations with limited or no insurance coverage.
Understanding uncompensated care helps stakeholders in healthcare policy to better address financial challenges and develop strategies to reduce the burden on healthcare institutions while maintaining patient care quality.