Texas Children’s President Mark Wallace said the projected shortfall was a result of an unusually low patient census, state funding cuts and increased demand for indigent care. Hospital leadership has already laid off three executives and plans to begin cost-cutting measures.
Texas Children’s has historically been one of Texas Medical Center’s most profitable hospitals. A Texas Hospital Association official said financial difficulties at Texas Children’s may signal the beginning of a statewide trend, according to the report. Medicaid reimbursements will take a one percent cut starting Sept. 1, and more cuts are expected in the next two years.
Read the Houston Chronicle report on Texas Children’s Hospital.
Read more on hospital finances:
–6 Ways for Hospitals to Improve Their Bottom Lines from John Johnston at QHR Consulting
