Since 1980 about 2,000 community hospitals have closed. Lincoln Park Hospital is the latest, and the CEO lists the causes:
A higher than anticipated level of uncompensated care (charity care, Medicaid reimbursements) that has resulted in an unprofitable hospital, regulators imposing facility upgrades that are extremely costly and not feasible given our existing financial state, and the credit crisis and deteriorating financial market conditions that have made financing facility upgrades and providing more time to improve operating conditions that could lead to profitability impossible.
Every single problem listed, including the credit crisis, was generated by government meddling in the market.
Any questions?
[h/t M.D.O.D.]
Comments 5
I guess you’ve not seen this from the Chicago Tribune:
‘Lincoln Park Hospital has been in violation of state health and safety codes, putting patients at risk and threatening the facility’s ability to get federal funding in the future, according to state and federal health records and a national hospital accreditor.
‘The 125-year-old North Side hospital, which is closing in the face of financial troubles, has been operating since at least July despite the violations, which include ineffective communication among staff and inadequate monitoring of patients, according to records. In addition, its policies related to “infant abduction security” were flawed, state health officials said.’
Posted 23 Oct 2008 at 7:15 am ¶Sounds like a typical NHS hospital.
But seriously, Marc, your genius for missing the point is once again in evidence. Here’s what happened: the government created all manner of red tape and regs, then reduced payments so much that the hospital could not afford to comply.
Government health care strikes again.
Posted 23 Oct 2008 at 9:16 am ¶Where will the money come from to fund your community hospitals to stop them closing?
Posted 23 Oct 2008 at 12:40 pm ¶Drastic reduction of counterproductive, overlapping, and contradictory regulations; Medicare and Medicaid payment reform; Elimination of benefit mandates and restrictions on interstate purchase of private insurance.
These changes, along with a variety of others, would eliminate most of the problems that killed this hospital and many others.
Posted 23 Oct 2008 at 3:20 pm ¶I don’t see how any of this will provide more income for hospitals, unless you mean that the government pays more through Medicare/Medicaid - and that means more taxes. Regulation is a necessity - you can’t afford to have hospitals slip into substandard care like Lincoln; eliminating benefit mandates will surely just mean fewer services paid for and less income; and the marginal effect of the uninsured buying lower cost out of state plans will hardly amount to much. No, I can only see you want more nationalisation, which is the way things are going anyway.
Posted 23 Oct 2008 at 4:36 pm ¶Post a Comment