Those who brought on technology earlier seemed to fair a bit better than those without or very little technology...BD
Looming Crisis Takes on New Sense of Urgency as Dependence on Sources of Non-Patient Care Revenue Become More Vulnerable in Weakening Economy
New York, NY - More than half of short-term acute-care hospitals in the United States are technically insolvent or at risk of insolvency, according to a recent analysis conducted by Alvarez & Marsal Healthcare Industry Group, part of the global professional services firm Alvarez & Marsal. As states and municipalities begin to limit spending in the face of slumping tax revenues and a weakening economy, the financial health of many hospitals is likely to further deteriorate. Many will encounter serious liquidity crises and face the prospect of radically restructuring or shutting their doors, the report notes.
More than 2,000 of the nation's 4,900 acute-care hospitals do not make a profit treating patients and must rely on alternate and generally unstable sources of funding, including government subsidies and philanthropic contributions. Of the hospitals classified as "profitable," approximately 1,000 do not generate sufficient cash flow to fund essential, non-discretionary capital expenses necessary to comply with regulations and/or remain competitive with increasingly dominant academic medical centers. The majority of potentially insolvent hospitals are located in urban areas.
"In many cases, the complexities of operating a hospital or hospital system overwhelm management and the boards that oversee them."