Report: CT hospital finances bleak

A new report released by the state of Connecticut suggests that the state's hospitals are in a uniquely difficult financial position. The report, issued by the state's Legislative Program Review and Investigations Committee, concluded that Connecticut hospitals "appear not as healthy financially as hospitals in the rest of the country." This is music to the ears of the Connecticut Hospital Association, which has been making this point for more than a decade, according a piece in the Hartford Courant. According to the CHA, about half of the state's 30 non-profit hospitals ran deficits, and the others weren't generating much of a surplus. CHA members blame this largely on what they see as far-too-low reimbursement rates from the state's Medicaid program, which cost hospitals $250 million last year according to the CHA, but the report didn't address this concern. Legislative researchers did note, however, that Connecticut hospitals face particularly high operating costs, including upkeep on aging buildings which are older than hospitals in other regions. State regulators should address the Medicaid reimbursement issue by early 2007, however, and CHA execs are keeping their fingers crossed.

To get more background on the state's hospital situation:
- read this item in the Hartford Courant
- review the state's draft report (.pdf)