Mon 22 Dec 2008
When Will Hospitals File For Bankrupty?
Posted by RichSlick under Observations
1 Comment
I find it odd that I haven’t read about a single hospital filing for bankruptcy or being close to insolvency despite every other sector: retail, commodities, manufacturing, energy, etc; all flirting with financing issues. What gives?
There have been at least 500k jobs lost over the past few months and I would imagine that most unemployed people aren’t going to carry their expensive health insurance plans so where is the money coming from?
I would imagine that hospitals invest money in the market like any other industry but not a single peep about any hospital endowment losing money. Not a single peep about hospitals insolvency. Not a single peep about hospital layoffs. I find this very odd although I understand that health care is a growing & booming field thanks to the baby boomers but something doesn’t add up.
December 25th, 2008 at 12:18 am
Hospitals haven’t had it all that well, and of course you know that one of the Long Island hospitals lost a lot of money in the Madoff scandal. Still, hospitals count on Medicare and Medicaid money to help keep them going, and money from other insurances to try to stay balanced. However, hospitals know their budgets, and lately more of them are doing what would have been unthought of last year, that being laying off nurses to help balance those budgets, even though there’s a nursing shortage. In my opinion, that’s going to backfire on them later on, but they’ll do whatever they can to stay in business.