FULL FINANCIAL DISCLOSURE BY HEALTH CARE FACILITIES

WHEREAS, health care reform will require a cost-containment strategy that controls health care costs. Control of these costs must not jeopardize the quality of the care provided; and

WHEREAS, in anticipation of reform, many hospitals across the nation have implemented cost-cutting measures that have resulted in staffing cuts, an increased workload for those providing care and an attack on wages and benefits of health care workers; and

WHEREAS, the main source of income for hospitals and health care facilities is the payment received from patients and their insurance companies for patient care services rendered; and

WHEREAS, the public believes that the high cost of care they pay is being used solely for patient care purposes but, in fact, many hospitals throughout the country are using this money for other purposes; and

WHEREAS, hospitals are using patient care dollars to create elaborate corporate structures with for-profit subsidiaries. These subsidiaries are not required to disclose the amounts of the profits, how they are used and who is actually sharing the profits. There is no scrutiny as to whether such investments are a proper use of these funds; and

WHEREAS, any profits made by the use of patient care dollars should be used only for patient care purposes and to help reduce the cost of health care:

RESOLVED, that FNHP/AFT support health care reform legislation that requires the full financial disclosure and accountability by all hospitals and health care facilities including any subsidiary that they are directly or indirectly involved with.