IRS issues report on hospital community benefit
The Internal Revenue Service has released a final report on its 2006 survey of not-for-profit hospitals, which found the nearly 500 hospitals surveyed dedicated an average 9 percent of total revenues to community benefit. The report warned that attempts to set a percentage threshold for determining compliance with community benefit “could have disproportionate impacts on hospitals, depending upon their size, where they are located, their community benefit mix, and other hospital and community demographics.”
Hospital credit ratings tank in 4th quarter
A poor economy and crisis in the financial markets put strong downward pressure on credit ratings for not-for-profit hospitals in 2008, according to a report by Moody’s Investors Service. Downgrades exceeded upgrades by a record 27 to 4 in the fourth-quarter as the economic downturn escalated and market volatility increased. Moody’s downgraded 53 ratings for the year, the most in the not-for-profit hospital sector since 2001. The report also noted a significant deterioration in liquidity positions from investment losses.
Iowa hospital announces hiring & salary freeze
Mercy Medical Center in Cedar Rapids, Ia., has implemented a hiring freeze in addition to a salary freeze for managers, directors and senior management. Mercy CEO Tim Charles said Mercy was adjusting to “economic realities.” Other Iowa hospitals are also feeling the pain of recession. The University of Iowa Hospitals and Clinics in Iowa City has reduced expenses by 9 percent since last fall, primarily through staff redistribution and attrition, while Mercy Hospital in Des Moines allowed employees to go part-time or voluntarily resign.
Hospital employment climbs slightly in January
Employment at U.S. hospitals rose 0.17 percent in January 2009 to a seasonally adjusted 4,711,000 people, according to a Bureau of Labor Statistics report. The increase was 8,200 more than in December 2008 and 137,000 more than a year ago. Without the seasonal adjustment, which removes the effect of fluctuations due to seasonal events, hospitals employed 4,695,900 people in January, 10,900 fewer than in December and 131,100 more than a year ago. The overall unemployment rate rose four-tenths of a percentage point in January to 7.6 percent.