Family to Family Iowa

Perils face public hospitals

Posted 8/8/2012

Prior to the recent recession, the finances of public safety-net hospitals were in surprisingly good shape. But new research published by Health Affairs finds that the future--at least in the near term--may not be quite so bright. According to the Commonwealth Fund-supported study, "Strained Local and State Government Finances Among Current Realities That Threaten Public Hospitals' Profitability, [http://www.commonwealthfund.org/Publications/In-the-Literature/2012/Aug/Public-Hospitals-Profitability.aspx?omnicid=20]" which was led by Harvard Universitys Nancy Kane, safety-net hospitals that are directly governed by elected officials and in highly competitive markets have significantly higher operating margins than more politically independent safety-net institutions. But with government  subsidies set to shrink as public finances are squeezed and calls for deficit reduction grow louder, hospitals currently relying on politically negotiated funding may need to revamp their business strategies. Read more on commonwealthfund.org [http://www.commonwealthfund.org/Publications/In-the-Literature/2012/Aug/Public-Hospitals-Profitability.aspx?omnicid=20].

 

 

 

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Strained Local and State Government Finances Among Current Realities That Threaten Public Hospitals' Profitability

 

Nancy M. Kane, D.B.A., Sara J. Singer, Ph.D., Jonathan R. Clark, Ph.D., Kristof Eeckloo, Ph.D., and Melissa Valentine, M.P.A.

 

August 6, 2012

 

Read more  [http://www.commonwealthfund.org/Publications/In-the-Literature/2012/Aug/Public-Hospitals-Profitability.aspx?omnicid=20]

 

The Commonwealth Fund [http://www.commonwealthfund.org/] is a private foundation that aims to promote a high-performing health care system that achieves better access, improved quality, and greater efficiency. If you received this alert as a "forward" and would like to subscribe or if you would like to receive alerts on other issues, register for My Commonwealth Fund [http://www.commonwealthfund.org/myprofile/myprofile_edit.htm]. If you would like to unsubscribe, please go to the Manage Subscriptions page at http://www.commonwealthfund.org/subscriptions.aspx [http://www.commonwealthfund.org/subscriptions.aspx] or write to e-alerts@cmwf.org [mailto:e-alerts@cmwf.org].The Commonwealth Fund is on Twitter. Follow us at www.twitter.com/commonwealthfnd  [http://newsletters.commonwealthfund.org/t/2101/14/528/0/]for updates.

 

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