Oklahoma Hospitals Must Have New Sources of Revenue
Hospitals are businesses. While some people view health care delivery as a governmental service like education or public safety, health care is a business. It is the largest private industry in the state, employing approximately one out of ten Oklahomans. This is especially true in rural Oklahoma where health care is often the largest employer. Not only do hospitals employ many people who pay taxes, they also purchase goods and services from vendors, provide philanthropic support to our communities and often pay tax revenue to state and local governments. They also support businesses around them like specialists and pharmacies.
Like all businesses, hospitals cannot continuously provide services in excess of revenue. Unlike most businesses, hospitals can’t turn anyone away. So if someone shows up at the hospital without health insurance, hospitals are obligated to provide care with no way to cover those costs. In a state like Oklahoma with no additional source of funding to fill in the gaps, the economic engine sputters. To avoid closing, often the only options for hospitals are to shift costs to the private sector, increase costs for those with insurance – or shut down. We have already seen this first hand in communities such as Sayre and Frederick.
Businesses around the state are struggling to keep up with rising insurance premiums and health care costs. And more importantly, no one wants to rush a loved one to the hospital only to find the doors are closed. Oklahoma needs to take care of all of its people and having quality hospitals is a key component of physical and economic health. Think about it: a company looking to open a plant in Oklahoma is much more likely to choose a community that has a hospital. Closing hospitals only makes it more difficult to attract capital investment and recruit new jobs, especially to rural Oklahoma. And without jobs, more people will move away from rural Oklahoma and a downward spiral will accelerate.
Solving the problem will not be easy. It will require courage, leadership and compromise. There are many ideas out there to address the issue of finding funding sources for health care. Everyone’s ultimate goal is private health insurance plans for every Oklahoman. But as part of that solution, we must be seeking new sources of funding so that hospitals can continue to treat all of Oklahoma’s citizens. Lawmakers have shown in the past they support innovative solutions to making sure hospitals can remain open. We need to build on that success and find additional opportunities.
Inaction will have devastating, long-term impacts on the health of Oklahomans and the prosperity of our state. It is time for action on what is truly a business issue, impacting all Oklahomans.