Uncompensated Hospitalizations in Children’s Hospitals - Summary - MDSpire

Uncompensated Hospitalizations in Children’s Hospitals

  • By

  • James C. Gay

  • David C. Synhorst

  • Natalie Grills

  • Matthew Hall

  • June 1, 2026

  • 0 min

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Objective:

To determine the rate and variability of unreimbursed hospitalizations at US children's hospitals (CHs) and their implications for financial stability.

Key Findings:
  • Mean proportion of uncompensated hospitalizations was 3.4% (range, 1.8%-6.3%), indicating a significant financial impact on CHs.
  • Total cost of uncompensated care was $233.9 million, with a mean cost per uncompensated encounter of $33,105, highlighting the need for improved reimbursement strategies.
  • Uncompensated encounters were more likely for shorter stays, lower complexity, observation status, and patients discharged against medical advice, suggesting areas for targeted interventions.
Interpretation:

CHs experienced a mean revenue loss of $23.4 million per hospital in 2021 due to uncompensated hospitalizations, which may threaten their financial stability and ability to serve their communities.

Limitations:
  • Study hospitals may not represent all CHs, potentially limiting the generalizability of the findings.
  • Estimated costs may not reflect actual costs of care, which could affect the accuracy of financial assessments.
  • Supplemental payments contributing to financial stability were not included, which may underestimate the financial impact of uncompensated care.
Conclusion:

Understanding and minimizing uncompensated hospitalizations is crucial for the financial stability of CHs and their capacity to provide essential care.

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