View a complete glossary of hospital and health care-related terms here.
- Critical Access Hospital (CAH):These are smaller hospitals that have 25 beds or less. Minnesota has 77 critical access hospitals that serve as an important lifeline to Minnesota communities.
- “Tweener” Hospital: These are smaller regional hospitals that provide levels of care that are too high to qualify as critical access hospitals. They serve an important role in providing care throughout the state.
- Prospective Payment System: PPS hospitals receive a predetermined payment based on the patient’s diagnosis and other factors, rather than the actual cost of services provided. Most large hospitals are PPS hospitals.
- Hospital System: These are entities which manage or own multiple hospitals or clinics.
- Medicaid/Medial Assistance: Medicaid is a federal program that provides coverage for people very low income. In Minnesota the program goes by the name Medical Assistance or MA. The program is funded with both state and federal dollar.
- MinnesotaCare: This program, established in 1992, provides health care coverage for working Minnesotans who make too much to qualify for Medical Assistance. This program is paid for by taxes on health care provides, as well as state and federal dollars.
- Medicare: This program provides care for primarily those over 65 or with a disability.
- Managed Care Organizations: In Minnesota, not-for-profit health plans have formed networks of providers and offer some level of care management to control access, costs and quality. Some examples of such organizations include Blue Cross and Blue Shield of Minnesota, HealthPartners, and Medica. The plans typically negotiate rates with hospitals based on a prospective-fee-for-service basis.
- Charity Care: Not-for-profit and government-owned hospitals all have financial assistance programs or charity care as a part of their mission. Patients who have no health care coverage may qualify for a hospital’s charity care policy by completing some basic paperwork, though it is not always a requirement. People without health insurance often end up in the hospital emergency department because they have limited access to clinics and they often wait until an acute need arises before accessing the health care system.
- Bad Debt: Bad debts are typically payments that hospitals expected to collect from patients, but were not paid. Hospitals are often left with unpaid bills from patients who don’t respond to follow-up invoices and offers for financial assistance. Financial assistance from hospital policies include 100% billing write-offs for patients below $200% of the federal poverty guidelines. Minnesota’s hospitals also work to enroll eligible patients in medical assistance programs and connect them with organizations to help resolve their medical debts.
- Uncompensated Care: Uncompensated care is the combination of charity care and bad debt. In 2021 Minnesota’s hospitals and health systems contributed almost $655 million in uncompensated care.