Frequently Asked Questions

What is a safety net hospital?
A safety net hospital or health system provides a significant level of care to low-income, uninsured, and vulnerable populations. Safety net hospitals are not necessarily distinguished from other providers by ownership – some are publicly owned and operated by local or state governments and some are non-profit. Rather, they are distinguished by their commitment to provide access to care for people with limited or no access to health care due to their financial circum-stances, insurance status, or health condition.

How are safety net hospitals financed?
Safety net hospitals rely on a variety of funding sources to finance the care they provide. A large portion of their funding is derived from government programs such as Medicare and Medicaid. (In the case of NAPH members, over half of their net revenues are from Medicare and Medicaid.) Safety net hospitals also receive non-governmental sources of funding from patients with commercial insurance and self-pay patients. Self-pay patients are defined as individuals with no form of third-party insurance. In safety net hospitals, these patients generally cannot afford to pay for much, if any, of their care.

What role do our members play in their communities?
The National Association of Public Hospitals and Health Systems (NAPH) represents more than 100 hospitals and health care systems around the country. These hospitals and health systems serve a variety of essential roles in their communities. In addition to providing inpatient and outpatient care to all patients, regardless of ability to pay, they also serve as community-wide resources for many kinds of specialized care. NAPH members train a substantial proportion of America’s physicians and other front-line providers and are the foundation of our nation’s emergency preparedness system.

What kinds of patients go to safety net hospitals?
Safety net hospitals provide health care to an extremely heterogeneous set of patients. They distinguish themselves from other hospitals by providing high-cost specialized services, stand-by services to all members of the community (e.g., trauma, pediatric and neonatal intensive care, and burn care) and by providing services to the uninsured, underinsured, and other low-income populations. In 2001, NAPH hospitals provided services to patients in the following payer categories: 32 percent Medicaid, 21 percent Medicare, 21 percent commercial, and 26 percent self-pay.