NCH is affiliated with Massachusetts General Hospital and Partners HealthCare but operates autonomously and is responsible for balancing its $36 million annual budget, according to the report.
The hospital typically operates on a deficit in winter months, which is made up in summer months; however, this year’s losses were unexpected, according to the report.
Aside from reductions in reimbursement and donations, MGH implemented an electronic health records system that cost millions of dollars to install. NCH budgeted a $1.7 million loss, accordingly, but changes in Medicare and insurance reimbursement dramatically increased the figure to $6 million, according to the report.
Officials from NCH say they will have to cut an additional $2 million on top of the $1 million cut from the budget last year. According to the report, NCH will implement a voluntary wage freeze on the nine directors of the senior team and bring in staff to examine potential cost reductions.
Read the Times’ report about Nantucket Cottage Hospital’s $4 million loss.
