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Will Catholic hospitals survive without government reimbursements?

Linacre Quarterly 2017 Februrary
This brief essay will begin to address the feasibility of operating a Catholic healthcare system without reimbursement from government healthcare programs such as Medicare and Medicaid. This question stems from the recent ACA/HHS "Nondiscrimination in Health Programs and Activities" final rule. Summary : The average hospital in the United States receives 40-50 percent of its net revenues from governmental sources. Participation in Medicare is contingent upon the hospital having a Medicare provider agreement. Participation in other governmental programs (Medicaid) as well as most commercial insurance is also contingent upon that agreement. Hospitals, including "Catholic" hospitals, cannot survive without a Medicare provider agreement. That agreement may be terminated for non-compliance with Medicare and other governmental regulations such as the recent ACA/HHS "Nondiscrimination in Health Programs and Activities" final rule, which could require "Catholic" hospitals to provide services which violate moral principals of the Church.

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