When Jessica Staten’s kidney stones wouldn’t cross, she stated, her physician advised a process to “blow ’em up.” She went to have it performed final November at St. Joseph Medical Middle in Bellingham, Washington, one in every of 9 hospitals that the Catholic well being system PeaceHealth operates within the Pacific Northwest and Alaska.
“I was probably there a total of 3½ hours, and everything went well,” stated Staten, who works as an accountant and has medical insurance. What got here subsequent shocked her: PeaceHealth despatched a invoice for $5,313.63 and, she stated, instructed her she didn’t qualify for assist to decrease the associated fee. Staten stated she requested about monetary help however was instructed she earned barely an excessive amount of.
PeaceHealth goals to “carry on the healing mission of Jesus Christ by promoting personal and community health, relieving pain and suffering, and treating each person in a loving and caring way,” in accordance with a 2022 tax submitting.
For Staten, struggling lingered lengthy after receiving care from the well being system with the one hospital on the town.
To repay her medical invoice, Staten finally took on extra debt, utilizing her apartment as collateral to safe a line of credit score of greater than $5,000, in accordance with information reviewed by KFF Well being Information. She stated the road of credit score had an 11.2% rate of interest. That was cheaper than a cost plan the hospital supplied via a 3rd social gathering, which Staten stated she was instructed would have charged about 12.5% curiosity.
“It’s all about the money,” stated Staten, who has lived in Bellingham for greater than 30 years. “That’s the way they think now at the hospital.”
PeaceHealth spokesperson Victoria Wilson stated the hospital gives sufferers interest-free 12-month cost plans. For some sufferers, the month-to-month obligation is unaffordable. PeaceHealth additionally now gives longer-term plans with a 9% rate of interest “in alignment with current regulations,” she stated, declining to elaborate additional.
“Each patient who comes to us seeking care is experiencing a vulnerable moment in their life and needs healing,” Wilson stated in an emailed assertion. “We hold each healing opportunity sacred, so financial healing is closely aligned with our Mission.”
The “Ethical and Religious Directives for Catholic Health Care Services,” issued by the U.S. Convention of Catholic Bishops, outlines social accountability ideas for Catholic well being services. One states that “a just health care system will be concerned both with promoting equity of care — to assure that the right of each person to basic health care is respected — and with promoting the good health of all in the community.”
As of 2023, there have been simply over 600 Catholic common hospitals nationally and roughly 100 extra managed by Catholic chains that place some spiritual limits on care, a KFF Well being Information investigation revealed.
Catholic nuns established many hospitals within the identify of service. However modern-day practices at such services reveal how they adhere to the directives and church instructing in a method — prohibiting or limiting procedures that the church deems immoral, comparable to abortion and what it calls “assisted suicide” — whereas neglecting social accountability requirements, sufferers and clinicians stated.
“It does show the lack of control or influence that the faith organization has over the actual company,” stated Shane Alderson, chair of the Baker County Board of Commissioners in Oregon. The native Catholic hospital owned by Trinity Well being — Saint Alphonsus Medical Middle-Baker Metropolis — final 12 months shut down its obstetrics division. Its intensive care unit can be closed, Alderson stated. “You get the feeling when you go to a Catholic hospital that the care and the vision is a lot more defined by the faith,” he stated, including: “It’s not really. It’s corporate.”
Sister Mary Haddad, president of the Catholic Well being Affiliation, stated in a written assertion that Catholic well being programs “remain true to our origins and the missions on which we were founded through our ongoing commitment to serving those most in need.” Along with affected person care, she stated, this consists of investing in applications to handle societal issues comparable to homelessness and meals insecurity.
Well being programs like CommonSpirit Well being, Ascension, PeaceHealth, Trinity Well being, and Windfall St. Joseph pay their chief executives thousands and thousands of {dollars} a 12 months — payouts that stored tempo in the course of the covid-19 pandemic emergency, in accordance with every firm’s tax filings.
CommonSpirit Well being’s then-CEO Lloyd Dean earned roughly $28 million in 2022; he was amongst practically three dozen executives who pulled down greater than $1 million that fiscal 12 months, in accordance with the well being system’s tax filings.
Elsewhere, Rod Hochman, CEO of Windfall St. Joseph Well being, earned $12.1 million. Ascension CEO Joseph Impicciche was paid $9.1 million, in accordance with company tax filings.
Spokespeople for Windfall and Ascension stated CEO compensation ranges are market-competitive; CommonSpirit spokesperson Felicity Simmons stated that Dean, who retired in July 2022, like different retiring executives “received standard deferred compensation benefits consistent with their many years of service.” (CommonSpirit’s 2021 tax submitting confirmed Dean earned $35.5 million that 12 months.)
To take care of their tax-exempt standing, all nonprofit hospitals are required to spend on group advantages, however federal legislation doesn’t specify how a lot or which providers qualify.
A number of massive nonprofit Catholic well being programs spend far much less on group advantages comparable to free or discounted care to eligible sufferers and group well being enchancment providers than the estimated worth of the thousands and thousands they safe in tax breaks, in accordance with analysis by the nonpartisan Lown Institute.
Primarily based on 2021 information, the assume tank discovered that 5 of the ten well being programs with the best “fair share deficits” are Catholic: Windfall, CommonSpirit Well being, Trinity Well being, Ascension, and Bon Secours Mercy Well being’s deficits have been between $488 million and $1 billion.
Analysis by Neighborhood Catalyst, a client advocacy group, discovered that Catholic hospitals deal with fewer Medicaid sufferers than different nonprofit hospitals, one thing at odds with their mission of prioritizing well being care wants of the poor and underprivileged. And like different hospitals nationwide, many massive Catholic well being programs enable aggressive techniques in opposition to sufferers for unpaid medical payments comparable to utilizing third-party collections, submitting lawsuits, inserting liens, garnishing wages, reporting unhealthy debt to credit score bureaus, or limiting care to individuals who owe, a KFF Well being Information investigation discovered.
Catholic bishops are “quite zealous for making sure that the reproductive and end-of-life care components of the ERDs are followed,” stated Patricia Gabow, a doctor who led a Denver security internet well being system for 20 years and has written in regards to the evolution of Catholic well being care within the U.S. She stated “they should be as zealous” on implementing the directives outlining Catholic well being care’s social obligations.
Amongst these directives is that this: “Catholic health care should distinguish itself by service to and advocacy for those people whose social condition puts them at the margins of our society and makes them particularly vulnerable to discrimination” together with “the poor; the uninsured and the underinsured”; and “children and the unborn.” The U.S. Convention of Catholic Bishops declined to remark for this text, referring inquiries to the Catholic Well being Affiliation.
PeaceHealth’s first hospital was based within the Nineties by nuns from New Jersey who ventured to the West to look after loggers, millworkers, fishers, and their households within the nation’s distant frontier. Seven nuns and a prepare dinner staffed St. Joseph Hospital in Whatcom County, Washington, the place Bellingham is situated. St. Joseph is the Catholic patron saint of households, employees, and the dying.
Now no nuns serve on St. Joseph Medical Middle’s or PeaceHealth’s management groups; two are on the well being system’s 11-person board of administrators. PeaceHealth CEO Liz Dunne earned $3.6 million within the fiscal 12 months that ended June 30, 2023, tax filings present, and the Lown Institute estimates the well being system spent $108.7 million much less on group investments than the worth of its tax exemptions. PeaceHealth declined to touch upon govt compensation or the Lown Institute’s findings.
In 2023, the well being system was pressured to refund as much as $13.4 million to greater than 15,000 low-income sufferers after the Washington legal professional common’s workplace discovered it billed sufferers who ought to have acquired monetary assist.
Catholic well being programs “set a standard for themselves which is higher” than different U.S. hospitals, Gabow stated. “Do they reach what they set for themselves? And there’s a fair amount of data to say probably not.”
Shutting Down Maternity Care
For greater than a century, a Catholic hospital now named Saint Alphonsus Medical Middle has supplied care in Baker Metropolis, Oregon, a ten,000-person city lower than 100 miles from the Idaho border.
The hospital was based in 1897 by nuns from Philadelphia. They handled 115 sufferers within the first 12 months, “many of whom were loggers, ranchers, and gold miners,” in accordance with a doc detailing its historical past. Sufferers “received complete health coverage” for $1 a month.
Like a lot of its friends throughout the nation, the small rural hospital would turn out to be a part of bigger Catholic well being programs. In 2010 it settled in as a part of Trinity Well being, the nation’s fourth-largest hospital system by variety of beds, in accordance with federal information. Trinity Well being operates 101 hospitals, plus different care websites, in 27 states. CEO Michael Slubowski’s most not too long ago reported wage was $5.3 million within the firm’s 2023 fiscal 12 months, when Trinity had an working margin of -2%, in accordance with monetary statements and tax filings. Working margins are a measure of a hospital’s monetary well being.
Trinity Well being spokesperson Melissa Lander stated Slubowski’s compensation relies on elements together with expertise and efficiency, and pay “must be market competitive to attract and sustain talented people.”
Baker Metropolis was given a jolt in 2023. Blaming staffing shortages and a decline in births, hospital executives introduced that Saint Alphonsus would shut its obstetrics unit, the one one within the county. The transfer induced an uproar regionally and pushback by Oregon’s two Democratic senators.
“What they were doing is essentially getting rid of the unit that made no money and cost a lot,” stated Cathie Roach, a nurse who labored in Saint Alphonsus Medical Middle’s obstetrics unit for roughly a decade earlier than retiring final 12 months.
Roach stated the staffing shortages have been “pretty much of their making.” Hospital administration rotated nurses amongst departments in ways in which made some really feel “really uncomfortable,” and the hospital didn’t take into account other ways of staffing the OB unit, she stated.
For months, she stated, nurses have been getting hints that executives may shut the beginning middle and commenced in search of jobs elsewhere. “Out here if you want to be an OB nurse and this is the only hospital, and they start talking about closing,” she stated, “then, time to get out.”
Hospital leaders stated its obstetric deliveries had “declined at a record rate.” Nonetheless, beginning information from the Oregon Well being Authority tells a unique story.
Births on the Baker Metropolis hospital declined to 103 in 2015, an almost 30% drop from 2013, earlier than rebounding. Annual births have been within the 120s or 130s till the covid-19 pandemic took maintain, once they fell 25% from 2019 to 2020. Nonetheless, from 2020 to 2022, between 100 and 112 infants have been delivered annually.
Saint Alphonsus Well being System and Trinity Well being declined to remark.
Now the closest hospital the place an individual can provide beginning is over 40 miles away. Within the winter in japanese Oregon, roads to get there are sometimes closed.
In 2023, 54% of Baker County resident births have been paid for by Medicaid, the well being protection program for individuals with low incomes, in accordance with Oregon Well being Authority statistics. That’s the next share than Medicaid-covered births statewide.
“They really lost their charity,” Roach stated, “when the old nuns disappeared.”
The Attain of Market Energy
The actions of Catholic well being programs can have an outsize affect due to their attain, fueled by mergers in recent times: 4 of the ten largest U.S. hospital chains by variety of beds are Catholic, in accordance with federal information from the Company for Healthcare Analysis and High quality.
Haddad famous that that energy has labored for the great of weak populations.
The affiliation and many of the Catholic well being programs criticized the Lown Institute report on group profit spending as flawed for excluding a number of classes reported to the IRS, together with uncompensated care prices and spending on well being skilled training. Haddad known as the analysis an effort “to disparage the work of Catholic health care by publishing misleading and biased reports that cherry-pick data.”
The Lown Institute considers 5 classes of group investments, together with monetary help for sufferers, group well being providers, and well being providers comparable to free clinics and dependancy therapy.
Ascension spokesperson Sean Fitzpatrick known as the report an “exercise in misinformation”; Trinity Well being’s Lander stated it “gives inaccurate and, unfortunately, misleading conclusions.” Bon Secours Mercy Well being spokesperson Maureen Richmond stated that the report “utilizes flawed high-level assumptions and incomplete data” and that the well being system’s group profit spending in 2021 exceeded the worth of its tax exemptions by greater than $274 million — whereas Lown calculated that its profit fell wanting tax exemptions by $488 million. Windfall spokesperson Melissa Tizon stated Lown’s methodology “falls short.”
The CHA and a number of well being programs declined to reply questions on whether or not sure enterprise practices raised by this story have been in line with the mission of Catholic well being care.
Years in the past, Catholic hospital mergers have been motivated primarily by ministry, stated Lawrence Singer, a retired affiliate professor who was affiliated with Loyola College Chicago College of Regulation. However issues have modified.
“It really isn’t ‘save the ministry’ any longer,” he stated. “It’s really business that’s driving a lot of this now.”
Consolidation raises market energy, and a number of other research have discovered that it results in larger costs for sufferers whereas the standard of care stays regular or declines.
The Federal Commerce Fee has blocked sure offers it predicts may cut back competitors. Traditionally the company has focused transactions during which hospitals function in the identical market, in accordance with antitrust legislation consultants. State regulators have broader authority than the federal authorities, however most states can’t reject proposed mergers with out going to courtroom, in accordance with researchers on the College of California Regulation-San Francisco.
A number of the largest Catholic well being programs, together with CommonSpirit Well being, Windfall St. Joseph Well being, and Trinity Well being, achieved their measurement resulting from a unique technique: combining corporations with little to no geographic overlap. Such “cross-market mergers” are historically tougher for the FTC to dam, in accordance with well being care antitrust consultants.
When hospitals in the identical market attempt to merge, “in some ways it’s a lot easier to quantify what’s going on” and the potential hurt to competitors, stated Kevin Hahm, an antitrust legal professional at Hunton Andrews Kurth and a former FTC official who investigated well being care transactions.
However offers involving hospitals in several areas are more and more drawing scrutiny. Researchers on the College of California-Berkeley, UC Regulation-San Francisco, and the College of Auckland discovered that well being programs that acquired hospitals greater than 50 miles away elevated costs by 12.9% after six years in contrast with hospitals not concerned in mergers or acquisitions.
“The new frontier,” stated Thomas Greaney, one in every of that merger examine’s authors, “is whether we’ll go after what we’ve called system power.”
‘We’re a Captive Viewers’
Bellingham is likely one of the nation’s least aggressive hospital markets: In 2021, it was the fifth most concentrated within the U.S. and had the best well being care costs of metro areas in Washington, in accordance with the nonprofit Well being Care Price Institute.
The nuns who established PeaceHealth’s first hospital would open or function others all through the twentieth century. PeaceHealth additionally acquired hospitals via mergers, together with Southwest Medical Middle in Vancouver and United Common Hospital in Sedro-Woolley.
“PeaceHealth is the leader in all three of its markets, with decided market share leads in its Northwest and Oregon markets,” credit score rankings agency Fitch Rankings reported in March. PeaceHealth declined to reply questions on whether or not a want to cost larger costs drives market selections.
Its hospitals stand out for what they’re paid. Rand Corp. researchers instructed KFF Well being Information that industrial well being plans in 2022 paid PeaceHealth’s Washington hospitals 314% of what Medicare would have paid for a similar providers. These are the highest-priced charges amongst well being programs within the state, in accordance with Rand’s evaluation. PeaceHealth declined to remark.
Staten’s medical invoice from PeaceHealth is gone: She used the house fairness line of credit score to pay it off. Now she’s paying extra on her mortgage each month.
She stated she will be able to’t afford to have one other expertise like her kidney stone surgical procedure, which she was instructed concerned a laser to interrupt the stones into smaller items.
“It’s not like you’ve got three hospitals to choose from,” Staten stated. “We’re a captive audience.”
