Hospital News – California and Pennsylvania Money Issues
Posted Jul 31 2009 10:18am
In California hospitals need to retrofitted to meet earthquake standards by the years 2013 and 1015 and most surveyed felt they were not going to be able to meet the deadline, which could in time force more closures. In Pennsylvania more hospitals are sliding into the red, big jump of over 20% with an erosion retaining staff and health IT initiatives being put on hold. Also worth noting is the situation in Arizona where the capitol buildings may need to be sold and leased back as funds are running out. BD
A majority of California hospitals won't be able to meet state-mandated deadlines for seismic retrofitting because of the nation's credit crunch and their own deteriorating revenues, according to a report issued Thursday by the California Hospital Association.
Under state law, the state could force hospitals to close if they fail to meet the deadlines. About a third of the state's 430 hospitals responded to the survey.
The survey also found the percentage of hospitals with a negative total margin increased from 31 percent to 55 percent over the same period.
“With more than half of Pennsylvania’s hospitals experiencing [losses], up from one-third just a year ago, we are seeing an erosion of hospitals’ ability to retain staff, invest in health-care technology, and make capital improvements — severely affecting hospitals’ core mission to provide care for patients 24 hours a day, seven days a week.”