Even some of the more profitable hospital systems are now delaying the start of new projects. Some have not been as lucky and have had to either close or file for Chapter 11, hospitals are not immune to the pitfalls of the current economic conditions by any means. More links below from the “Desperate Hospital” series I wrote a short while back and featured on Reuters. BD
In late August, even before the credit squeeze reached a full state of crisis, a hospital system in Hawaii filed for bankruptcy reorganization after a lender failed to extend a loan for another month. By September, a nonprofit hospital in Philadelphia found it could not borrow money through a traditional bond offering because the municipal bond market had come to a virtual halt.
And now, a hospital system in Minnesota says it plans to delay some new buildings, while another hospital group in Connecticut has decided to postpone the replacement of an emergency room. Other hospitals around the country say they are thinking about deferring the purchase of expensive new equipment like computer systems or multimillion-dollar M.R.I. machines.
And that hunkering down by hospitals could have a ripple effect on suppliers of medical equipment like General Electric and Siemens, not to mention the construction industry, analysts say. The labor market could take a hit, too. As major employers, hospitals had been among the bright spots in the country’s job statistics, but their hiring is also starting to slow.
Related Reading:
Desperate Hospitals - Hawaii- What is happening to our Hospital System?
Desperate Hospitals - New York, Texas and California (More)
Desperate Hospitals: Chicago Hospital Hangs For Sale Sign
Disappearing Credit Forces Hospitals to Delay Improvements - NYTimes.com
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