WSJ article re LGH parallels NewsLanc's findings

On June 28, the Wall Street Journal published an article entitled "Opting Out'Old Order' Mennonites and Amish Who Shun Insurance Face Rising Bills. Should Hospitals Cut Them a Break?"

The WSJ article anticipates one of NewsLanc’s findings in its extensive ongoing research into the causes for Lancaster General Hospital's exceptional profitability.

NewsLanc's "editor's note" to an article in the current newsletter entitled HEALTH: The High Cost of Medical Insurance states: "According to a report from the State, hospitals only collect a fraction of their 'charges' from insurance companies and MediCare. But Ralph’s percentage payment is based upon the bloated 'charges.' NewsLanc will report more on this in a forthcoming series analyzing the reasons for Lancaster General Hospital’s extraordinary profitability."

It is NewsLanc’s understanding that LGH accepts payments averaging 44% of its "charges" from insurance companies and an even lesser percentage as payment from MediCare as payment in full. Yet in calculating co-pay responsibilities for those insured or billing individuals not insured, LGH often insists on payment based on the full "charges."

The WSJ article states in part "….Complicating matters is that many of these [Amish] farmers won't buy health insurance: They believe it is the religious duty of their communities to provide for one another when sick. They don't pay Social Security taxes and reject Medicaid or Medicare benefits, as well as farm subsidies."

Later the article observes "Dr. [D. Holmes]Morton has called on the two local hospitals to offer half-price discounts to uninsured Amish and Mennonites, calling hospital bills inflated. He notes that the government and private insurers negotiate reduced rates. The hospitals, both of which are profitable, say they can't make special provisions based on religious beliefs or anything else."

"Lancaster General's chief executive Thomas Beeman calls the discount request unrealistic and unfair. 'You're really then putting the burden on you and everyone else,' he says."

Somewhat later in the article, the WSJ states "Lancaster General has increased its discount for uninsured patients to 25% from 15%. Mr. Beeman says uninsured patients now receive the same discount that commercial insurers do, though not as much as the government does." Yet NewsLanc’s review of State statistics would suggest that the discount should by about 56%, not 25% to 15%.

NewsLanc hastens to add that its research is not complete. It awaits responses to questions already being asked of LGH and anticipates posing future questions prior to publication of its research of all the factors contributing the LGH’s extraordinary profitability and whether some of the profit is derived unfairly at the expense of the Lancaster public.

NewsLanc urges readers to visit
http://online.wsj.com/article_email/SB121460367338511945-lMyQjAxMDI4MTI0OTYyMDkzWj.html while the WSJ article is still available to non-subscribers in order to read a detailed and fair account of dealings between the Amish and LGH.