An update on hospitals either laying off or closing due to debt and the ability to operate in the black. Almost 50% of the hospitals in the US somewhat border on insolvency. Upcoming new laws and potential budget cuts from Medicare won’t help the situation as time moves on. BD
An unprofitable Houston hospital owned by Birmingham's Medical Properties Trust has closed its doors. The 524-bed River Oaks Medical Center is owned and leased by an affiliate of the Birmingham-based real estate investment trust, according to a news release. The company purchased the two-campus hospital last year from Hospital Partners of America Inc., which decided to close the hospital.
Medicare officials said the company's financial situation is affected by a planned 2.5 percent reduction in reimbursements from Blue Cross Blue Shield of North Dakota, and expected Medicare cuts of 10.6 percent to physician payments.
"We have taken numerous steps to strengthen our financial condition and operational performance, along with the reduction in work force," the release said.