Seven out of 10 hospitals experienced a decline in their overall financial health during the past year, according to a survey of 768 community hospital CEOs conducted in August by the American Hospital Association. In a report and presentation released on Nov. 11, AHA said that more than one third of hospitals expect losses in the first half of 2009, up from 29 percent for the same period last year. The vast majority of hospitals surveyed have made cutbacks to address economic concerns. According to the report:
- More than half of hospitals have reduced staff.
- Eighty percent have cut administrative expenses.
- One in five hospitals have reduced services such as behavioral health, post acute care, patient education, and other services that require subsidies
- Since the beginning of 2008, 70 percent of hospitals have reduced capital spending for facility upgrades, clinical technology, and/or IT
In addition, many hospitals report “a marked increase” in the number of physicians seeking hospital financial support since the fall of 2008. Eight in 10 hospitals have seen an increase in the number of physicians seeking compensation of services such as on-call coverage. Nearly 75 percent report that more physicians are pursuing hospital employment. And more than one-third say that a growing number of physicians are interested in selling their practices to the hospital.
