Six out of 10 hospitals have seen an increase in emergency room patients without insurance – while nearly half of all hospitals have cut staff.
These findings were released in a survey by the American Hospital Association, the AHA’s second on the impact of the economic downturn on patients and community hospitals. The survey was based on responses from 1,078 AHA hospitals.
“Community need for care remains high and in these tough times, communities turn to their local hospital,” said AHA president and CEO Rich Umbdenstock. “Hospitals are walking a tightrope, trying to balance the growing needs of their communities with today’s economic challenges.”
The survey follows a February report by the Bureau of Labor Statistics showing hospital employment is no longer growing and that the number of mass layoffs for hospitals has more than doubled what it was a year ago.
In the new AHA survey, a majority of hospitals reported fewer patients are seeking inpatient and elective services; however, many hospitals are seeing more patients covered by Medicaid and other public programs for those in need. The need for hospital-subsidized services such as clinics, screenings and outreach is increasing even as charitable contributions are down.
“Today’s findings signal what many of us in healthcare are concerned about: People put off care when they lose their job, which can complicate healthcare issues for many down the road,” Umbdenstock said. “At the same time, the fact that hospitals are cutting staff challenges the notion that hospitals are recession-proof.”
The survey found that nine in 10 hospitals have made cutbacks in an attempt to weather the economic storm. More than one in five hospitals reported reducing services such as behavioral health programs, post acute care, clinics and patient education.
Despite taking these steps, a majority of hospitals are seeing a moderate or significant decline in their financial health in 2009 versus the same period in 2008. More than 40 percent expect losses in the first quarter of 2009.
A majority of hospitals reported fewer patients are seeking inpatient hospital care or elective care, further shrinking hospital resources. Financial measures such as days cash on hand are slipping. If key measures fall below a certain level, creditors can require immediate repayment of borrowed money.
Nearly all hospitals report that their ability to borrow funds to make improvements is getting worse or remains challenging. Many hospitals report significant difficultly accessing tax-exempt bonds and other sources of capital to make improvements. Nearly eight of 10 hospitals have stopped, postponed or scaled back projects such as facility upgrades planned or already in progress.