Banks are more reluctant to grant loans, cutting off hospitals’ capital improvements, Medicare and Medicaid reimbursement haven’t kept up with inflation and Medicare cuts are expected in October. Independent hospitals lack the clout to get higher payments from insurers and steeper discounts from suppliers.
From 1999 through 2008, the number of independent hospitals has fallen by 290 and so far this year, 70 hospitals and long-term care centers have been targets of acquisitions, 14 of which have been independent non-profits.
Despite the challenges, the following community hospitals have found ways to stay independent:
- Quincy (Mass.) Medical Center has a new clinical affiliation with Tufts Medical Center in Boston. Tufts provides breast cancer and thoracic surgery at Quincy and may also provide orthopedics, geriatrics and neurology services.
- Doylestown (Pa.) Hospital is partnering with other hospitals to provide cancer and other care.
- Boca Raton (Fla.) Regional Hospital lost $120 million in 2008 and briefly considered finding a hospital chain to join, but instead brought in a turnaround consultant and made a small profit in fiscal 2010. CEO Jerry Fedele says joining a hospital chain would threaten the hospital’s close ties with the community in terms of philanthropy and support from volunteers.
- Holyoke (Mass.) Medical Center in Massachusetts recently received $2 million in state grants to keep going.
- Community Medical Center in Missoula, Mont., has a visiting pediatric surgeon from Seattle Children’s Hospital, the only such specialist in Montana. It also joined with five other local hospitals to create a virtual purchasing system for equipment and services such as air ambulances.
Read the Kaiser Health News report on community hospitals.
Read more about community hospitals:
– 10 Challenges Facing Community Hospitals
– Statistics on Independent vs. Affiliated Community Hospitals, 1999-2008
