The loss is whatever is un or under funded. My "first bit" was exactly right. Loss is whatever they do not get paid. Those with government "insurance" pay, but pay below cost. The difference is unpaid, and un-reimbursed by anyone.

Not all hospitals are State facilities. Private hospitals get NOTHING from the government beyond medicaid/medicare reimbursement. The State hospitals get reimbursed by the State under various programs for "community health" but it's not like they show a loss on patient X's care, and get a check for the difference from Santa Fe. If they end up in the red, they might try for more next year. Might not get it, though.

We have 4 main hospitals here in ABQ (with branch hospitals as well).

Two are private, one is UNMH (University of New Mexico), and the last is the VA. Only UNMH and the VA are subsidized by the state or feds. If Pres has someone show up in the ER with no insurance who is ineligible for Medicaid, they eat 100% of whatever they cannot collect from the patient. If Medicaid or medicare pays below cost for care, they EAT IT, 100%.

Since they are a business, they eat nothing at all, they raise fees on those that DO pay that they have control over (ie: everyone who pays except medicaid/medicare since they have no control over how much those programs pay).