Few healthcare entities have as profound a stake in the business of care delivery, puchasing, and reimbursement as do acute hospitals. Oftentimes, as nonprofits, they tow the line between the effective and efficient managing of healthcare costs and remaining in the black. However, in tough economic times in which the concern is a dual one — general economic healthcare spending and the effect of the overall economic climate’s effect on patient access — that line between marginal profits and future sustainability becomes more and more difficult to maintain. A Harvard-affiliated hospital’s CEO breaks the news on his blog concerning the economic effects on operating expenses at his hospital.

You have probably read about layoffs in other hospitals in Massachusetts. A number of hospitals already find themselves in worse shape than us, and they have responded by reducing the number of staff. You have probably noticed that this is also true for many other types of businesses in the region. As of now, we do not think we will be forced to do that, and we will do our best to avoid that result. Many of us lived through the dark days of 2002, when I eliminated a number of jobs, and no one wants to repeat that experience.

A must-read. | LINK

Related Posts Within Doctor Pundit:

1. Job Losses in Healthcare Begin to Pick Up Steam Until as recently as last month, the prevailing wisdom —...
2. Obama Realizes Difficulties in Healthcare Policy Overhaul as He Prepares for Summit Now that Obama has made his HHS choice official and...
3. Commission Advising Medicare Payments Makes Suggestions on Medicare Payment Policies MedPAC, the independent commission that advises Congress on Medicare payments,...
4. Future Diabetes Care Costs Present Major Problem, Even with Reform Diabetes may be known for other things than just a...
5. Unionized Physicians and Acute Hospital Reach Agreement Physicians employed at a previously public-run NYC hospital affiliated with...