Urban Milwaukee hospitals sapped by suburbs

The profit gap between Milwaukee and its surrounding suburbs is growing, due in part to low Medicaid and Medicare reimbursement rates. While Milwaukee's suburban hospitals enjoy profit margins that exceed the national average, some urban hospitals are barely breaking even. As with other markets across the country, a disproportional number of Milwaukee patients with Medicare or Medicaid are cared for by urban hospitals--and it's hard to make that work financially.

This trend isn't just a problem for urban hospitals: Employers and private insurers are bearing the brunt of cost-shifting to make up the difference, causing healthcare costs to increase all around. "That's not sustainable in the long run for the financial stability of the hospitals in the long term, but also the economic viability of the region," observes George Quinn, executive vice president of the Wisconsin Hospital Association.

However, not everyone thinks government insurance programs are to blame for the situation. Jim Wrocklage, executive director of the Greater Milwaukee Business Foundation on Health, blames a lack of price competition for rising costs. A study released in June found that the area's health costs are higher than in other parts of the nation due to lack of competition.

- read this article from The Business Journal of Milwaukee for more

PLUS: In Philadelphia, suburban hospitals with cardiac programs are luring patients away from traditional urban leaders such as Temple and Hahnemann. Article

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