Grace Thompson
The Catholic Church is the largest non-government provider of healthcare services in the world. In the US, Catholic hospitals are represented by the Catholic Health Association of the United States, which comprises over 600 hospitals and 1600 long-term care and other health facilities. These hospitals treat 1 in 6 patients across all 50 states. Catholic hospitals, like most hospitals in the US, make much of their money through government reimbursements and insurance plans like Medicare and Medicaid. A 2002 study found that nearly 600 religiously affiliated hospitals in the US received over $45 billion in public funds, with approximately half of their revenues coming from government programs. During the COVID-19 pandemic, Catholic hospitals received billions in relief funding distributed based on the number of Medicare patients. Despite this substantial government funding, Catholic hospitals often deny patients crucial reproductive and end-of-life healthcare services, citing religious directives.
| Characteristics | Values |
|---|---|
| Catholic hospitals' framework for care provision | Based on the "Ethical and Religious Directives for Catholic Health Care Services" (ERDs) |
| ERDs prohibit | Contraception, abortion, end-of-life plans, sterilization procedures, and medically necessary healthcare for transgender people |
| Number of Catholic hospitals in the US | More than 600 |
| Number of long-term care and other health facilities | 1,600 |
| Percentage of patients treated by Catholic hospitals | 1 out of 6 |
| Revenue from Medicare and Medicaid in 2011 | $27 billion |
| Revenue from Medicare and Medicaid in 2020 | $48 billion |
| Percentage increase in revenue from Medicare and Medicaid from 2011 to 2020 | 78% |
| Percentage of net revenue from government sources for the average hospital in the US | 40-50% |
| Bailout funds received by Providence Health System | $509 million |
| Cash on hand for Providence Health System | $12 billion |
| Bailout funds received by Ascension Health | $211 million |
| Cash on hand for Ascension Health | $15.5 billion |
| CEO compensation for CommonSpirit Health's Lloyd Dean in 2022 | $28 million |
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What You'll Learn
Catholic hospitals receive billions in government funding
Catholic hospitals in the United States receive billions in government funding. They are the largest non-government healthcare provider globally, with over 600 hospitals and 1600 long-term care and other health facilities across all 50 states. They serve one in six patients in the US.
Catholic hospitals, like most hospitals in the US, rely heavily on government funding for their survival. They receive reimbursements from government programs like Medicare and Medicaid, which account for a significant portion of their revenues. Between 2011 and 2020, revenues from Medicare and Medicaid for Catholic hospitals increased by 78%, from $27 billion to $48 billion. This growth far outpaced that of all hospitals, which saw a 25% increase in revenue from Medicare and Medicaid during the same period.
The second-largest health system in the US, CommonSpirit Health, is a Catholic health system. In 2020, nearly 51% of its net patient revenue came from government payers, amounting to $13.3 billion. Other large Catholic health systems, such as Providence St. Joseph Health and Trinity Health, have also received substantial government funding.
The dependence on government funding by Catholic hospitals has led to concerns about the impact of lawsuits challenging their tax status or eligibility for government programs. These lawsuits threaten to cut off the substantial government funding they receive, which has been criticised for supporting hospitals that deny patients access to basic and comprehensive reproductive healthcare services, such as contraception, abortion, and sterilisation procedures.
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Catholic hospitals exploit access to federal funding
Catholic hospitals have been accused of exploiting their access to federal funding to receive even more government money. During the COVID-19 pandemic, Catholic hospitals received billions in relief funding, which was distributed based on the number of Medicare patients. For instance, the Providence Health System received at least $509 million in bailout funds, despite having $12 billion in cash on hand for investments. Ascension Health received at least $211 million, even though it had $15.5 billion in cash.
Catholic hospitals, like most hospitals in the US, rely heavily on government reimbursements and insurance plans like Medicare and Medicaid for their revenues. From 2011 to 2020, revenues from these sources rose by 78% for Catholic hospitals, compared to a 25% revenue growth for all hospitals. Four of the ten largest health systems in the US are Catholic. CommonSpirit Health, the second-largest health system in the country, reported net patient revenue from government payers as $13.3 billion in 2020, nearly 51% of its total net patient revenue.
Catholic hospitals have been criticised for taking advantage of their status as charitable organisations, receiving millions of dollars from taxpayers while spending less on charity care than for-profit hospitals. They have also been accused of denying patients crucial and lifesaving healthcare, including reproductive health services, end-of-life plans, and healthcare for transgender people, due to their adherence to the Ethical and Religious Directives (ERDs) imposed by the Catholic Church.
The growth in the number of Catholic hospitals in the US has led to concerns that more communities will be reliant on these facilities for their healthcare needs. Any lawsuits challenging the tax status or eligibility of Catholic hospitals to participate in government programs could have significant consequences. Catholic hospitals lobby governments to maintain their exemptions, arguing that they should not be forced to provide healthcare services that go against their religious beliefs. However, critics argue that Catholic hospitals should honour the full scope of the medical needs of the public, especially when receiving substantial government funding.
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Catholic hospitals depend on federal funding to exist
Catholic hospitals, like most hospitals in the US, rely heavily on government funding to exist. They make a substantial amount of their money through government reimbursements and insurance plans like Medicare and Medicaid. Revenues from these sources have risen sharply for Catholic hospitals and health systems, increasing by 78% from $27 billion in 2011 to $48 billion in 2020. This represents a much larger increase compared to all hospitals, which saw a 25% revenue growth from Medicare and Medicaid during the same period.
The Roman Catholic Church is the largest non-government provider of healthcare services worldwide. In the US, Catholic hospitals are represented by the Catholic Health Association of the United States, which includes over 600 hospitals and 1,600 long-term care and other health facilities across all 50 states. These hospitals treat one out of six patients in the country.
Catholic hospitals have been criticised for exploiting their access to federal funding to receive even more government money. For example, during the COVID-19 pandemic, they received billions in relief funding based on the number of Medicare patients they served. Despite this reliance on public funds, Catholic hospitals often deny patients basic reproductive health services, end-of-life plans, and medically necessary healthcare for transgender people, citing religious directives.
The financial dependence of Catholic hospitals on the government has implications for their operations. Lawsuits challenging their tax status or eligibility to participate in government programs could threaten their survival. Additionally, compliance with regulations such as the ACA/HHS "Nondiscrimination in Health Programs and Activities" rule could require Catholic hospitals to provide services that conflict with their religious directives, potentially resulting in the termination of their Medicare provider agreements.
In conclusion, Catholic hospitals in the US are heavily dependent on federal funding for their existence. This reliance has significant consequences for their operations and patient care, highlighting the complex interplay between religion and healthcare in the country.
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Catholic hospitals spend less on community benefits
Catholic hospitals have been criticised for spending less on community benefits than they receive in tax breaks. According to the nonpartisan Lown Institute, several large nonprofit Catholic health systems spend far less on community benefits such as free or discounted care for eligible patients and community health improvement services. The Lown Institute's report found that five of the ten health systems with the greatest "fair share deficits" are Catholic: Providence, CommonSpirit Health, Trinity Health, Ascension, and Bon Secours Mercy Health. These health systems' deficits ranged from $488 million to $1 billion.
In response to the report, representatives from Catholic health systems criticised the methodology and claimed that it was misleading and based on incomplete data. For example, a spokesperson for Bon Secours Mercy Health claimed that their community benefit spending in 2021 exceeded their tax exemptions by over $274 million, while the Lown Institute calculated a shortfall of $488 million.
While federal law requires nonprofit hospitals to spend on community benefits to maintain their tax-exempt status, there is no specified minimum amount or qualifying services. This lack of standardised reporting makes it challenging to compare hospital spending across the board.
Catholic hospitals, like most hospitals in the US, rely heavily on government reimbursements and insurance plans like Medicare and Medicaid for a significant portion of their revenue. A 2002 study found that out of nearly 600 religiously affiliated hospitals in the US, they received over $45 billion in public funds. More recently, revenues from Medicare and Medicaid for Catholic hospitals and health systems have seen a substantial increase, growing by 78% from $27 billion in 2011 to $48 billion in 2020.
The impact of Catholic health systems is significant, with four of the ten largest US hospital chains by the number of beds being Catholic. However, their policies and religious directives have also led to criticism and lawsuits, particularly regarding the restriction of certain healthcare services, such as contraception, abortion, and reproductive health services.
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Catholic hospitals deny basic reproductive health services
Catholic hospitals in the United States are a large and growing part of the country's healthcare system. They receive considerable public funding, with revenues from Medicare and Medicaid rising by 78% between 2011 and 2020, compared to a 25% revenue growth for all hospitals. Four of the ten largest health systems in the US are Catholic.
Despite receiving government money, Catholic hospitals routinely deny basic reproductive health services to their patients. This is due to the Ethical and Religious Directives for Catholic Health Care Services, a document developed and updated by the US Conference of Catholic Bishops' Committee on Doctrine, which prohibits medical procedures "judged morally wrong by the teaching authority of the Church".
The Directives state that Catholic health institutions:
- May not promote or condone contraceptive practices
- Prohibit direct sterilization, such as a hysterectomy
- Do not permit abortion, including during the interval between conception and implantation of the embryo
As a result, many Catholic hospitals across the country are withholding emergency care from patients experiencing miscarriage or other pregnancy complications. They also routinely prohibit doctors from performing tubal ligations at the time of delivery, leaving patients to undergo additional surgery elsewhere after childbirth.
In addition, Catholic hospitals are prohibited by church doctrine from providing a variety of other basic reproductive health services, including:
- Most forms of assisted reproduction
- Comprehensive AIDS prevention and condom distribution
- "Morning-after" pills for rape victims
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Frequently asked questions
Yes, Catholic hospitals receive government money in the form of reimbursements and insurance plans like Medicare and Medicaid. They also receive millions of dollars in tax breaks and public funds.
A 2002 study found that nearly 600 religiously affiliated hospitals in the United States received over $45 billion in public funds. From 2011 to 2020, revenues from Medicare and Medicaid for Catholic hospitals rose by 78%, from $27 billion to $48 billion.
Catholic hospitals are treated as charitable organizations and receive government funding as a result. They also receive reimbursements from the government as they serve Medicare patients.
There are concerns that Catholic hospitals restrict certain healthcare services, such as reproductive healthcare, despite receiving government funding. Lawsuits challenging the tax status or eligibility of Catholic hospitals to participate in government programs could threaten their funding and survival.
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