A new survey by The Hospital and Healthsystem Association of Pennsylvania reveals that the economic environment for the state's general acute-care hospitals has not improved since the end of 2008 - and in some areas has worsened.
"These latest survey findings continue to demonstrate the importance of sustaining federal and state investments in hospitals, particularly through the Medicaid and Medicare programs that provide healthcare coverage for the state's elderly and most vulnerable citizens," said Carolyn F. Scanlan, HAP's president and CEO.
Scanlan said cutting payments to hospitals under Medicare and Medicaid jeopardizes the ability of hospitals to meet community healthcare needs and "undermines the very economic stability of many Pennsylvania communities."
Key findings from the latest survey of Pennsylvania hospitals include:
- 59 percent report a moderate to significant increase in patients without healthcare coverage or patients needing financial help (up from 50 percent in December).
- 53 percent report a moderate to significant decrease in admissions (up from 49 percent in December).
- 53 percent report a moderate to significant decrease in elective procedures (up from 43 percent in December).
Scanlan said more Pennsylvania hospitals are reporting concerns about financial operations. For instance, she said, almost all of the hospitals surveyed (95 percent) report that the economic crisis has affected their financial projections for the current fiscal year (up from 84 percent in December).
Additionally, 45 percent of Pennsylvania hospitals report a moderate to significant increase in day-to-day financial operations (up from 42 percent in December), and 84 percent of hospitals have reduced or are considering reducing staff to adjust to the financial crisis (up from 62 percent in December).
Eighty-eight percent of hospitals report reducing capital spending for building improvements, renovations or new equipment.
"As the economic recession worsens, greater numbers of Pennsylvanians are losing healthcare coverage, and there are a greater number of Pennsylvanians relying on Medicaid for healthcare coverage - all of which strains the ability of Pennsylvania hospitals to provide vitally needed services," Scanlan said.
According to data from the Pennsylvania Department of Labor and Industry, hospitals are among the "Top 5" employers in 55 of Pennsylvania's 67 counties. Scanlan said this means that while the healthcare sector has been an area for employment growth in Pennsylvania, as the recession deepens and hospitals reduce staff, entire communities will be affected.