A new issue brief published by Pacific Research Institute finds four Michigan hospitals that take federal dollars from a government program to help low-income patients with drug costs assisted fewer at-risk people than hospitals who don’t use the program. The study also found the participating hospitals are more profitable than non-participating hospitals.

The 340B government program is designed to assist patients not eligible for Medicaid or Medicare but still are low income and help pay for prescription medications. Hospitals call this charity care which means they do not expect to be reimbursed for services. This is different than when hospitals expect to be paid for healthcare provided but are unable to collect.

Mid-Michigan Medical Center, Covenant Medical Center, Munson Medical Center, and William Beaumont Hospital are four of 25 304B hospitals sampled in the brief. They all provide below national average charity care compared to hospitals that do not take federal dollars from the 340B program. The 340B hospital’s in the US are 37 percent more profitable than the average of all hospitals (including those classified as 340B) and continues to increase.

All hospitals spent 2.03 percent of its patient revenue on charity care while 340B hospitals spent 1.66 percent.

Mid-Michigan Medical Center’s revenue was $409 million in 2015 and $484 million in 2018, an 18.3 percent increase. The center devoted .22 percent of its net patient revenue, which is the amount of revenue received from all patient care, on charity care. The director has the highest paid salary at $1.2 million in total compensation.

Covenant Medical Center’s revenue was $654 million in 2016 and increased to $703 million in 2019, a 7.5 percent increase. The center spent .09 percent of its net patient revenue on charity care. The president/CEO has the highest paid salary at $1.6 million in total compensation.

Munson Medical Center’s revenue $653 million in 2017 and $704 million in 2019, a 7.8 percent increase. It spent .20 percent of net patient revenue on charity care. The director has the highest paid salary at $1M in total compensation annually.

William Beaumont Hospital’s revenue was $2.9 billion in 2017 and in 2019. It devoted .53 percent of net patient revenue to charity care. The president/CEO is the highest paid salary at $5.9 million in total compensation and the director makes over $2 million.

Wayne Winegarden, author of the issue brief, states, “Despite the program's mission, 340B hospitals are providing less charity care than non-340B hospitals, yet have higher average profitability. This general pattern reflects 340B hospitals in Michigan as well. These outcomes provide additional evidence in favor of fundamental programmatic reforms to reign in the program's many excesses."

None of the hospital’s responded to request for comment.

As we celebrate Thanksgiving today, the words of President George Washington provide some guidance as to why the holiday was formalized, but also reminds us that peace, opportunity and liberty are central to why we should give thanks.

(The following text was taken from the Library of Congress and was originally published by the Mackinac Center for Public Policy Nov. 22, 2011.)

By the President of the United States of America, a Proclamation.

Whereas it is the duty of all Nations to acknowledge the providence of Almighty God, to obey his will, to be grateful for his benefits, and humbly to implore his protection and favor – and whereas both Houses of Congress have by their joint Committee requested me to recommend to the People of the United States a day of public thanksgiving and prayer to be observed by acknowledging with grateful hearts the many signal favors of Almighty God especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness.

Now therefore I do recommend and assign Thursday the 26th day of November next to be devoted by the People of these States to the service of that great and glorious Being, who is the beneficent Author of all the good that was, that is, or that will be – That we may then all unite in rendering unto him our sincere and humble thanks – for his kind care and protection of the People of this Country previous to their becoming a Nation – for the signal and manifold mercies, and the favorable interpositions of his Providence which we experienced in the course and conclusion of the late war – for the great degree of tranquility, union, and plenty, which we have since enjoyed – for the peaceable and rational manner, in which we have been enabled to establish constitutions of government for our safety and happiness, and particularly the national One now lately instituted – for the civil and religious liberty with which we are blessed; and the means we have of acquiring and diffusing useful knowledge; and in general for all the great and various favors which he hath been pleased to confer upon us.

[sic] and also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations and beseech him to pardon our national and other transgressions – to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually – to render our national government a blessing to all the people, by constantly being a Government of wise, just, and constitutional laws, discreetly and faithfully executed and obeyed – to protect and guide all Sovereigns and Nations (especially such as have shewn kindness unto us) and to bless them with good government, peace, and concord – To promote the knowledge and practice of true religion and virtue, and the increase of science among them and us – and generally to grant unto all Mankind such a degree of temporal prosperity as he alone knows to be best.

Given under my hand at the City of New York the third day of October in the year of our Lord 1789.

George Washington