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Hospitals That Serve Many Black Patients Have Lower Revenues and Profits

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Care for Black patients is concentrated at a relatively small proportion of all US hospitals. A study that sought to assess disparities in funding between hospitals associated with the proportion of Black patients that they serve, found that US hospital financing effectively assigns a lower dollar value to the care of Black patients. The study, published in the Journal of General Internal Medicine, focused on all Medicare-participating hospitals from 2016–2018. Among the 574 Black-serving hospitals, an average of 43.7% of Medicare inpatients were Black, vs. 5.2% at the 5,166 other hospitals. Black-serving hospitals were slightly larger, and were more often urban, teaching, and for-profit or government (vs. non-profit) owned. Patient care revenues and profits averaged $1,736 and $−17 per patient day respectively at Black-serving hospitals vs. $2,213 and $126 per patient day at other hospitals.

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