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Recession troubles hospitals across the country

Submitted by Pallavi Kulkarni on Sun, 12/28/2008 - 08:48. ::

New York, United States, December 28: Many hospitals across the country are facing bankruptcies, closures, layoffs and other cutbacks because of recession. The whole country is facing financial crises due to bad economic conditions and hospitals are no exceptions.

Some prestigious hospitals are facing serious troubles. Cleveland Clinic in Ohio that had to resort to salary freeze on its 33,000 strong workforce earlier this month has now restricted traveling, and the use of contractors and consultants.

Five of the 79 acute care hospitals in New Jersey were shut down earlier this year and sixth is in line to be closed soon. State health department has decided to pump $44 million into other six hospitals to keep them afloat.

The Healthcare Association of Hawaii reported in November that many hospitals have been running in losses for the last eight years and situation may become worse. Two hospitals in Hawaii have gone bankrupt and a number of workers have lost jobs at several clinics. According to the Hawaii Health Systems network, a dozen of public hospitals need $13 million in advance to avoid closures.

Charlotte, N.C.-based Hospital Partners of America, which operates four hospitals; Michael Reese Medical Center in Chicago and Associated Healthcare Systems Inc., which has four rural hospitals in the South and North Oakland Medical Centers in Pontiac, Mich and many other hospitals have filed for bankruptcy.

Nashville-based HCA Inc., country’s top most hospital with chain of about 160 hospitals, is laying off 110 jobs and even closing down departments like emergency department. St. Vincent's Health System in Alabama; Boston Medical Center, which has been primarily serving immigrants and poor people, and the Columbia St. Mary's system with a chain of four hospitals in Milwaukee and Mequon, Wis., are also cutting on jobs, trimming the hours of part-timers and has stopped hiring expensive temporary nurses through agencies.

The 617-bed Physicians Medical Center Carraway in Birmingham, Ala.; Century City Doctors Hospital in Los Angeles, and Lincoln Park Hospital, in an upscale Chicago neighborhood, are the hospitals that have been shut down recently.

Many other hospitals are cutting expenses, delaying their capital projects and even thinking about mergers or selling office building to raise cash.

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