Health provider predicts big loss - The Boston Globe

News Type: Event — Seeded on Mon Mar 17, 2008 3:04 PM EDT

Article Source: The Boston Globe

politics, single-payer-health-care, government-run-helth-care, socialiszed-medicine

Cambridge Health Alliance, a key part of the Boston area s healthcare network, is facing a potentially catastrophic loss this year and is looking to eliminate up to 300 jobs, or about 9 percent of its workforce, in an effort to stabilize finances.
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The alliance, which includes Cambridge Hospital, Somerville Hospital, and Whidden Hospital in Everett, says it is being hit hard by the state s new healthcare reform law, which has left it responsible for providing free care for those without insurance while reducing the hospitals compensation for such services.

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1.5

{"commentId":1588936,"authorDomain":"PurelyPolitical"}

Bodhi1

It has begun. Expect it to get much worse.

{"commentId":1588936,"threadId":"235936","contentId":"1372489","authorDomain":"PurelyPolitical"}

1 vote

#1 - Mon Mar 17, 2008 3:05 PM EDT

{"commentId":1589050,"authorDomain":"wbrianwhite"}

Brian White

"Our management built a budget that anticipated unachievable growth and set up this hospital for the failed situation it now faces."

The other explanation is plain old mismanagement, which seems chronic in groups that manage hospitals.

{"commentId":1589050,"threadId":"235936","contentId":"1372489","authorDomain":"wbrianwhite"}

#2 - Mon Mar 17, 2008 3:34 PM EDT

{"commentId":1589267,"authorDomain":"kylen"}

KyleN

Knowing about it doesn't make it automatically manageable. They knew about it and the answer was - growth of services that actually pay for themselves or reduction of staff they just left the second part out.

Less money to do more work, they have to have sufficient gains in productivity for that to work out ok. It's hard to manage innovation, perhaps they could have done more to fire union workers and encourage innovation before the change but somehow I doubt it.

{"commentId":1589267,"threadId":"235936","contentId":"1372489","authorDomain":"kylen"}

1 vote

#2.1 - Mon Mar 17, 2008 4:24 PM EDT

{"commentId":1589305,"authorDomain":"wbrianwhite"}

Brian White

If the outlook is grim, that should be in the budget forecast. Whether the shortfall is manageable is one issue, but it should never be hidden with budget forecasts of unachievable growth.

{"commentId":1589305,"threadId":"235936","contentId":"1372489","authorDomain":"wbrianwhite"}

#2.2 - Mon Mar 17, 2008 4:37 PM EDT

{"commentId":1589394,"authorDomain":"kylen"}

KyleN

That's true but unfortunately a pretty surefire way to lose a government contract. You can't blame the government for their own mistakes otherwise you lose the contract, and you can't tell the truth. So the least evil alternative is what was chosen, unrealistic growth forecasts and much praying.

{"commentId":1589394,"threadId":"235936","contentId":"1372489","authorDomain":"kylen"}

#2.3 - Mon Mar 17, 2008 5:03 PM EDT

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Health provider predicts big loss - The Boston Globe

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