Maine makes Medicaid payments to hospitals
Maine Gov. John Baldacci has signed a $45 million financial order to pay a portion of the state’s obligation to Maine hospitals under an October 2006 settlement agreement. The financial order enables Maine to use $45 million of its General Fund money made available by the federal Recovery Act. The money will draw down federal dollars for a total payment to hospitals of $163 million in state and federal dollars. Maine’s hospitals will receive payments in 2009 and 2010 toward old settlements totaling $373.7 million in federal and state dollars.
Major Chicago health system cuts jobs
Resurrection Health Care, which operates eight hospitals in Chicago and its adjacent suburbs, is eliminating 125 management, ambulatory services and system support positions. The Chicago-based Catholic healthcare system said 81 employees have already been laid off and an additional 44 vacant positions will not be filled. Resurrection officials insisted that no employees who provide bedside care were affected. The healthcare system lost $73 million in 2008, and projects additional significant losses in the fiscal year ending June 30, 2009.
Atlanta health system halts building projects
Emory University is suspending its $1.5 billion medical expansion project due to concerns about the deteriorating economy. The project suspension is likely to last through the end of 2009, although smaller construction projects already underway - such as a new public health building - will continue. Emory Healthcare intends to build a new replacement hospital and large outpatient clinic on its main campus, in addition to a medical tower that would have hospital beds along with outpatient clinic space.
Philadelphia hospital to close in summer 2009
Temple University Health System has confirmed that it will close Northeastern Hospital by July 1, 2009. The Philadelphia-based health system will transition the 100-year-old facility from an inpatient hospital to a multi-specialty ambulatory care center. Temple officials said the decision was made in the face of declining utilization and mounting losses on healthcare operations at the hospital. In Fiscal Year 2008, the hospital reported a loss of $6.6 million and is projected to lose an additional $15 million in FY 2009.