Financial Problems of Voluntary Hospitals

November 17, 1948

Report Outline
Hospital Income, Expenditures, Deficits
Development of American Hospital System
Financial Difficulties of Voluntary Hospitals
Proposed Solutions for Hospital Problems
Special Focus

Failures of community chests to reach their goals in 1948 red feather campaigns will add to the financial difficulties of hospitals which look to the chests for aid in meeting a part of their operating expenses. Newspaper surveys in eastern states report hospital deficits for this year which will run into the millions. All recent studies have pointed to the need of finding new sources of income or cutting the costs of hospital service, or both, if the country's nonprofit hospitals are to be put on a firm financial footing.

The most obvious source of financial aid in meeting operating expenses is the federal government, which already contributes to costs of hospital construction under the Hospital Survey and Construction Act of 1946. A 10-year national health program proposed by Federal Security Administrator Ewing in September stated, among other things, that “the federal government must underwrite and subsidize a significant proportion of the maintenance costs of non-profit hospitals of all kinds.”

Go to top

Hospital Income, Expenditures, Deficits

Joseph G. Norby, president of the American Hospital Association, said, Nov. 8, that government must assume full responsibility for hospital care of the indigent. Expenditures for the indigent, not fully covered by state and local contributions, are in part responsible for the deficits of many voluntary (nongovernmental) hospitals.

ISSUE TRACKER for Related Reports
Hospitals
Nov. 21, 2014  Reforming Veterans' Health Care
Feb. 10, 2012  Patient Safety
Aug. 13, 1999  Hospitals' Financial Woes
Jul. 18, 1986  For-Profit Hospitals
Nov. 14, 1980  The Hospice Movement
Jan. 16, 1963  Problems of the Hospitals
Nov. 17, 1948  Financial Problems of Voluntary Hospitals
BROWSE RELATED TOPICS:
Charities and Philanthropy
Hospitals