Hospitals across the country must contend with a daunting fact that continues to weigh on the country’s health care system—Medicaid and Medicare reimbursement have not kept pace with and do not cover costs.
In 2024, Medicare reimbursed hospitals at just 83¢ to the dollar, according to recent national numbers from the American Hospital Association. At Asante, those payments are even lower. Medicare was at 79% and Medicaid was at 67% in FY25.
For example, when caring for someone who is an Oregon Health Plan member, Oregon’s Medicaid program, the hospital receives about $67 in revenue for every $100 we spend on doctors, nurses, pharmaceuticals, supplies and overhead to provide those services. Commercial payers – those on plans through their employers – are the only demographic in the payer mix not creating consistent losses; however, as businesses downsize or leave, it becomes increasingly difficult to rely on these plans to make up the gap.
Nearly one-third of Oregonians are on Medicaid and around 75% of Asante’s patients are on Medicare or Medicaid. The current trajectory is unsustainable.
Read and share this information to help strengthen awareness and understanding of a critical health care issue that is especially affecting southern Oregon.
