FierceHealthcareFierceHealthITFierceHealthFinanceHospital Impact   FiercePharmaFierceBiotechFierceSarbox
About | Sample | Privacy

New York non-profit hospitals in the red

Tools
Tags
profit hospital
new york state
community benefit
profits
irs

You think your budget is tight?  Try being a New York state-based non-profit hospital. The state's 218 non-profit facilities lost a collective $95.4 million in 2005, putting them at 49th in the country for operating margins, according to the Healthcare Association of New York State (HANYS). HANYS said that 56 percent of the state's non-profits are losing money, breaking even or running margins of less than 1 percent, a dismal situation given that non-profits typically need margins of 4 percent or more to fulfill their charitable missions. I'm sure such stats will help get hospitals fired up to join the HANYS political action committee, which helped to block a planned $770 million in 2006 state Medicare cuts. A pessimist might say, though, that a mere PAC can do little to repair the larger structural problems that impact hospitals today.

For more information:
- read the HANYS press release
- read this article in Business First of Buffalo

Related Articles:
- IRS to investigate non-profit hospitals. Article
- At MA hospitals, non-profit CEO pay draws fire. Article
- Non-profits face community benefit scrutiny. Article

Comments

Hospitals throughout this country are operating in the red. Most of them make up the difference through local taxes or local philanthropy. The total financial results from all sources of funding are what is critical. Hospitals, though generally charitable in mission, must have a positive bottom line in order to survive. Philanthropy and taxes are generally what make community hospitals viable over the long term for their communities. The added burden that hospitals have of payments from Medicare and Medicaid that do not cover costs and from unfunded patients increases the challenge. The local, state, and Federal governments continue to mandate new services to these underfunded groups as well as the costs of the solutions of the very real problems identified by the Institutes of Medicine in their studies make it nearly impossible to survive on what hospitals are paid. There continue to be demands for increased services, improved technologies, and reduced costs. Since medicine and hospitals in particular are very dependent on people to provide services, and new medical technologies tend to increase the demand for higher trained personnel without reducing the previous demand, they are unable to obtain the same economies from new technology that other industries claim. The only way to repair the situation is to bring all health care under one payment system across the nation with adjustments for the costs of real estate and personnel by region.

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

What is 19 + 65?
To combat spam, please solve the math question above.