PRN Blog - Hospitals Face Financial Squeeze

We found an interesting article in The Wall Street Journal on May 1 detailing a study conducted by the restructuring firm, Alvarez & Marsal. 

According to the study, 2,000 of the nearly 3,900 acute-care hospitals are not able to make a profit from treating patients.  Furthermore, nearly 750 of the hospitals who do turn a profit stil do not have enough to reinvest in improvements and other essential expenditures.

Industry experts say competition from same-day surgery cents and outpatient clinics drive occupancy levels down.  In addition Medicaid and Medicare reimbursements are decreasing couples with a high number of uninsured patients are part of the problem.

Click here to read the entire story: Hospital Face Financial Squeeze. (Note: Subscription required).

 

Posted on 5/6/2008

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