Current Trauma Status Report - Southern Nevada Health District

Trauma Center Funding Comparison Study
Introduction
Providing a stable source of funding for trauma centers has been an ongoing issue since the early
development of trauma systems in the country. Changes in funding sources, particularly insurance
payers, have created instability over the years. 18,19,20 Improving revenue cycle management and payer
contracting has helped, but in some communities these efforts have not been substantial enough to
stabilize their trauma system.
Below, The Abaris Group provides an overview of identified funding sources for trauma care.
State Funding Sources
Many states provide funding for the administration of their state’s trauma system at the state level.
However, there are only four states that provide ongoing funding to support their trauma centers:
Illinois, Mississippi, Oklahoma, and Washington. California had a one-time funding program that
expired in 2003.
Arizona
During November 2002 the state voted to approve doubling the state’s tobacco tax on cigarettes to
$1.18 a pack and use the $150 million strictly for the trauma centers. The measure passed two to one.
California
During the 2001 legislative session, the California Legislature passed AB1430, The Trauma Fund Act,
which encouraged the development of a statewide network of trauma centers and established a one
time source of funds for trauma centers in the state. The $20 million allocated from this bill was
renewed during 2002 and provided support to the trauma centers through 2003. The funding was
allocated on a fixed and volume basis. Each trauma center received a fixed amount according to their
designation level (e.g. $150,000) and then an allocation based on volume of patients as determined by
trauma registry entries.
Illinois
The State of Illinois established a fund for uncompensated trauma care in 1993. The funding comes
from a $5 fee placed on every moving violation over $55. In 1994 a $30 fine from each DUI conviction
or order of suspension was added. Since 1993, they have expended approximately $20.4 million. The
amount of funding each hospital receives depends on the number of trauma patients treated.
Additionally, funding is provided to those hospitals that care for Medicaid trauma patients. There is no
funding for physicians.
Mississippi
In 1998 the State of Mississippi began allocating between $8.0 – 8.5 million annually for
uncompensated trauma care. The funds come from revenue generated by Mississippi’s Tobacco
Settlement principal ($6.0 million) and from moving traffic violations ($2.5 million). There are seven
18 Trauma Care: Saving Lives Despite Setbacks, Zoller, M. Medical World News, June 1988.
19 Trauma Collapse, Can the system be saved, Williams, MJ. California Hospitals, October 1999.
20 Trauma Care: “Lifesaving System Threatened by Unreimbursed Costs and Other Factors”, GAO, May 1991.
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