Ohio hospitals are planning more cuts in staff, services and vital renovation projects, according to a statewide survey.
An Ohio Hospital Association survey found that the struggle for financial stability will worsen for many hospitals on Nov. 30 – the due date of the first installment of a new $718 million state tax on Ohio hospitals. The tax, proposed by the state's governor passed by legislators, is designed to help balance the state's two-year budget.
According to the survey, hospitals have taken various cost-cutting measures. Half of those surveyed (48 percent) have already enacted layoffs, and two-thirds (67 percent) have not filled job vacancies. More than one-third (37 percent) have reduced or eliminated services, while one in 10 (12 percent) have cancelled or delayed expansion or renovation projects.
Eighty-one percent of surveyed hospitals have taken other cost-cutting measures such as reducing community benefit spending, reducing employee benefits or freezing wages.
According to the survey, Ohio hospitals anticipate future cuts. For instance, 18 percent plan to lay off additional employees, 50 percent plan to leave future vacancies unfilled and 39 percent plan to reduce or eliminate services. Also, 49 percent plan to cancel or delay expansion or renovation projects and 64 percent will take additional cost-cutting measures.
Necessary emergency department modernizations are among renovation delays, and the current H1N1 flu epidemic is adding to the overcrowding in hospital ERs.
"The flu epidemic exemplifies why hospital renovations are necessary and why this new tax is so devastating,'' said James Castle, the OHA's president and CEO. "Hospitals are facing a series of bad choices. More layoffs and service reductions will mean longer waits and higher costs for all patients."
A previous OHA survey released in March showed 35 percent of hospitals were planning layoffs, 42 percent had enacted hiring or salary freezes and 29 percent had cancelled or delayed construction projects or capital improvements.
The OHA received 75 responses, representing 51 percent of OHA member hospitals, to its most recent survey. The association represents 175 hospitals and 18 health systems throughout the state.