Members of America’s Essential Hospitals fill a vital safety net role in communities across the country. They share a mission to care for everyone, including the uninsured and underinsured, low-income patients, and other people who face social and financial barriers to care. Entire communities rely on these essential health systems for lifesaving services, such as trauma and burn care; public health and safety; and health professionals training.
Yet, despite this indispensable role, no statutory definition exists to ensure safety net resources reach the essential hospitals that disproportionately provide these services. As a result, these hospitals struggle to make ends meet. In 2023, members of America’s Essential Hospitals had an aggregate operating margin of -7.0%, which was more than three times lower than the aggregate operating margins for all other hospitals (-2.3%).
Reps. Lori Trahan (D-Mass.) and David Valadao (R-Calif.) have reintroduced the bipartisan Reinforcing Essential Health Systems for Communities Act (H.R. 7145), which fills this gap in federal law. They are joined by a bipartisan coalition of original cosponsors. The bill defines essential health systems, using practical and evidence-based measures to gauge a hospital’s patient mix and the amount of uncompensated care it provides. These measures are consistent with recommendations by the Institute of Medicine more than two decades ago to define safety net hospitals.
We call on Congress to recognize the urgent need to define hospitals that form the foundation of our nation’s health care safety net by defining essential hospitals into law.
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