The Conservative Cave
Current Events => General Discussion => Topic started by: Chris_ on March 17, 2008, 11:35:14 AM
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Health provider predicts big loss
Cambridge Health Alliance, a key part of the Boston area's healthcare network, is facing a potentially "catastrophic" loss this year and is looking to eliminate up to 300 jobs, or about 9 percent of its workforce, in an effort to stabilize finances.
more stories like thisThe alliance, which includes Cambridge Hospital, Somerville Hospital, and Whidden Hospital in Everett, says it is being hit hard by the state's new healthcare reform law, which has left it responsible for providing free care for those without insurance while reducing the hospitals' compensation for such services.
"A significant downturn in our volume and the transition to the new free care pool reimbursement system created a perfect storm for us," said Dennis D. Keefe, chief executive of the alliance.
Before healthcare reform took effect last year, Keefe said, Cambridge Health Alliance was reimbursed by the state for the full cost of providing services to the uninsured. Under the new system, "we only get 60 to 70 percent," he said. The reduction is particularly significant for the alliance because its hospitals serve a high percentage of uninsured patients. Despite the state's efforts to enroll all low-income residents in free or subsidized insurance programs, many still do not have coverage.
Keefe said the hospital was especially bruised in its second fiscal quarter, which ended Dec. 31, when the new payment system for uninsured patients took effect. Government payments for free care to the uninsured fell by nearly $14 million compared with the previous quarter, he said.
...just what the DUmmies want Universal Failure Of Healthcare :banghead:
MORE (http://www.boston.com/business/healthcare/articles/2008/03/17/health_provider_predicts_big_loss/)
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So trying to manage infinite demand with finite resources doesn't work??? Whoulda thunk it???