Search: 08/2009

Some California hospitals may have trouble meeting looming state seismic rebuild deadlines because of a soft credit market and deteriorating revenue, according to a member survey by the state hospital association.

Some 28% of hospitals responding to the survey said they have seen interest expenses rise in the first quarter of 2009, while 45% said their operating margins have declined this year, according to the survey of hospital chief financial officers conducted in April.

A recent report by the California Hospital Association, based on an April survey of about 130 California hospital CFOs, warns that nearly two-thirds (64 percent) of them say their facilities won’t be able to get the capital needed to comply with 2013/2015 deadlines. CHA blames the ongoing credit crunch, “deteriorating hospital revenues caused in large part by governmental underfunding” of Medicare and Medi-Cal, devaluation of investments, increasing numbers of uninsured patients and other woes.

Almost 200 California hospital buildings have won a break that allows them to put off earthquake safety repairs required under state law until 2030.

Recession-battered California hospitals are asking state lawmakers to provide relief from seismic safety rules that could prompt closure of facilities that don't meet impending deadlines.

According to an August 2009 policy brief published by the Kaiser Commission (hotlink to the report), hospital emergency rooms in California and elsewhere are "operating at or over capacity" with an increasing number of patients seeking care. According to the report, several emergency rooms studied were described as "overwhelmed" or "close to the breaking point."