The budget reductions come as LVHN prepares to close five medical offices that operate within the Lehigh Valley Physician Group, which is one of the largest in the nation, according to the report.
The following offices will close, according to The Morning Call.
- ExpressCare at the Health Center (East Allen Township, Pa.)
- Careworks Allentown
- LVPG Family Medicine Forks Township (Pa.)
- LVPG Family Medicine Moorestown (Moore Township, Pa.)
- LVPG Plastic and Reconstructive Surgery-Muhlenberg (Bethlehem, Pa.)
The letter said the budget reductions and decision to streamline physician practices is a result of a decline in patient admissions and inpatient acute surgical admissions, as well as declining reimbursement from Medicare and Medicaid, according to the report. The network reported a shortfall of $267 million for Medicare and medical assistance in fiscal year 2015, according to report.
Yet, The Morning Call notes, LVHN still posted revenue of $1.9 billion for fiscal year 2015, a 13 percent increase over the prior year.
More articles on finance:
Physicians Realty Trust posts $152.8M in Q4 investments
Nebraska lawmakers reveal Medicaid plan
UAB Health System CEO responds to Alabama’s request for $157M boost in Medicaid funding
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
