Salem Hospital to Cut $9 Million
Originally at StatesmanJournal.com
Administrators expect the deficit trend to continue and are planning to reduce expenses by $9 million over the next year. The hospital's budget in 2008 was $463 million.
Demand for hospital services has been greater than ever, but the hospital is receiving less money as more people are insured through government plans such as Medicare and fewer patients come in with commercial insurance, said hospital spokeswoman Julie Howard.
"Simply put, more of the patients we see, if they have insurance at all, have coverage through government plans that pay less than it costs for their care," Salem Health CEO Norm Gruber wrote in a memo sent to hospital employees, who were notified Friday.
It is the first time the hospital has seen a marked loss in nine years, said Cheryl Nester Wolfe, senior vice president and chief nursing officer.
Read More at StatesmanJournal.com
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It's risky repeating what any economist tells you...even if he was an expert in health care issues. But the economist said Medicare nationally does not underpay hospitals below their costs. He went on to say that hospital costing was somewhat transparent compared to physician costing (e.g., what is the true "cost" of the doc in his own office....?).
--so where are the national studies showing Medicare underpays below real costs at average hospital levels? There's more to this story than we see here.
rand dawson Siltcoos Lake