Healthcare In Crisis: Hospitals hurting in ailing economy - Pennsylvania

Friday, January 9, 2009

Hospitals hurting in ailing economy - Pennsylvania

Pennsylvania hospitals are being hit hard by the nation's economic crisis, according to a survey that paints a bleak financial picture at 160 acute care facilities.

The survey released Tuesday by The Hospital & Healthsystem Association of Pennsylvania found that the spreading economic turmoil has affected day-to-day operation of hospitals, with half of them reporting fewer admissions for elective procedures. Hospitals reported moderate to significant drops in knee replacements and shoulder surgeries, as well as outpatient procedures such as colonoscopies.

Among the survey's most significant findings at the state's hospitals and health systems:

• 75 percent are forecasting a moderate to significant effect on the financial stability of their facilities through December.

• More than half are reconsidering or postponing renovation or upgrading of inpatient facilities, and 64 percent are delaying the purchase or upgrade of technology and equipment.

• 45 percent reported increased expenses in accessing capital.

• 83 percent reported significant declines in investment income.

Leaders of the Harrisburg-based association said the recession is especially troubling because hospitals faced financial challenges even before the downturn. That includes higher rates of uncompensated care and jumps in labor, technology and utility costs.

The impact on patients is inevitable, association officials said. If more people lose jobs and health insurance, the financial burden on hospitals will increase and patients will postpone preventive and routine health services.

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Statistics Collection

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