Beth Israel Deaconess Medical Center Trimming Expenses - Boston
Posted Mar 06 2009 2:55pm
If you have kept up on the news of late, some of the hospitals in the Boston area were caught up in the Madoff scheme and lost funds, and Beth Israel is one that has been affected, but the issues go deeper. Paul Levy, the hospital CEO is known for his blog and for being very transparent about issues and this one is no different. I’m sure it’s a bridge he didn’t want to cross.
Bottom line is money, people are putting off surgeries in fear of losing their jobs, insurance compensation is down, and all the way around the numbers are not maintaining with the economic times we are facing today. BIDC is a teaching hospital for Harvard. You can also read more at his blog, Running a Hospital, where he talks with the blogging world and others and it is open for comments.
In addition, the local television station also has an online video interviewing Paul Levy and well worth watching, as these issues are not limited to Boston, it’s all over the US, we have plenty in California for that matter. It’s nice in the fact that he has put the issue out to everyone seeking ideas and contributions, two or more heads are always smarter than one, especially in the times we are living in today. The University itself has also been taking a hard look at their financial state as in the news of recent too. You can always find his blog under the blog roll section on the site. BD
Beth Israel Deaconess Medical Center, facing a $20 million loss this year, says it is cutting expenses by freezing salaries for some employees and reducing top executives' pay, and also considering layoffs.
In an e-mail to employees, chief executive Paul F. Levy said the expense cuts are necessary because of state cutbacks on Medicaid payments, a disappointing contract with Blue Cross and Blue Shield of Massachusetts, and an unexpected drop in patient volume.
In addition, many hospitals depend on charitable donations from wealthy philanthropists, as well as income from investments. Between the Bernard Madoff scandal and the plunge in the stock market, much of that income has evaporated for many institutions. Many Boston hospitals also hold annual fund-raising activities in Palm Beach, Fla., where numerous residents have been affected by the Madoff scandal.
Last month, Dr. Edward J. Benz Jr., president of Dana-Farber Cancer Institute, spelled out cost reductions, including eliminating 100 of 3,575 full-time jobs, slowing the growth of capital spending in 2009 and beyond, and postponing plans to lease 100,000 square feet in a new research tower on Longwood Avenue.