A number of hospitals in Milwaukee (Wisconsin) faced losses or lowered profits in 2006, fueled by in part by changes in insurance reimbursements. Even though some of the hospitals saw net income growth, net profits were still down due to lower insurance reimbursements and seeing growing numbers of uninsured or inadequately insured patients.
The biggest money loser in 2006, by far, was St. Michael Hospital, which closed last year. The hospital, which is run by Wheaton Franciscan Healthcare, Glendale, lost more than $100 million in fiscal 2006, with $32 million being operating loss and $68 million associated with the closure. Another Wheaton hospital, St. Francis, lost $10 million in 2006.
Yet another hospital, Aurora Health Care's Sinai Medical Center, lost $10 million in 2006. It faced this loss despite having won UnitedHealthcare of Wisconsin's preferred network status away from St. Francis Hospital. St. Francis, for its part, also lost $10 million. Officials say competition between St. Francis and Aurora hospital St. Luke's Medical Center continues.
To learn more about the area hospitals' financial challenges:
- read this article from The Business Journal of Milwaukee
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