As The Credit Crunch Widens, Don’t Forget The Hospitals
Hospitals ill from more bad debt, credit troubles
TRENTON, N.J. – Gainesville’s first community hospital has been on life support since the Shands Healthcare system in northern Florida bought it a dozen years ago.
Now, because of the recession, the plug is being pulled on 80-year-old, money-losing Shands AGH. Next fall, its eight-hospital not-for-profit parent company will shut the 220-bed hospital and shift staff and patients to a newer, bigger teaching hospital nearby as part of an effort to save $65 million over three years across the system.
Like many U.S. hospitals, Shands is being squeezed by tight credit, higher borrowing costs, investment losses and a jump in patients – many recently unemployed or otherwise underinsured – not paying their bills.
All that has begun to trigger more hospital closings – from impoverished Newark, N.J., to wealthy Beverly Hills, Calif. – as well as layoffs, other cost-cutting and scrapping or delaying building projects.
More closings and mergers are on the way, industry consultants predict.
We notice that, in the past, the MSM hasn’t shown concerns about hospital closings caused by overwhelming burdens from uninsured illegal aliens.
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"As The Credit Crunch Widens, Don’t Forget The Hospitals"
