Melanie Evans is on vacation this week. She will return Jan. 3.
Happy New Year!
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The economy grew more slowly than previously believed in the third quarter and one reason was weaker-than-expected consumer spending at not-for-profit hospitals.
The Bureau of Economic Analysis yesterday said the nation's gross domestic product grew an estimated 1.8% in the months of July, August and September, down from the prior 2% estimate.
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Sutter Health operates two dozen hospitals in two states and finished last year with marginal revenue growth. Nonetheless, profit increased for the giant California health system.
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Europe's debt crisis has roiled stock markets this year and that turmoil left its mark on not-for-profit hospital financial statements in September. But the far-reaching consequences of European distress concern some outstanding hospital bonds as well.
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Outmatched board members would be ousted from New York hospitals by the state under a proposal released last week by notable health policymakers. Poorly performing hospital executives would meet the same fate, my colleague Paul Barr reports in this week's magazine.
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Small accountable care organizations that hope to obtain an advance on future Medicare revenue will get an early look next month at the application, a few weeks before its release.
That practical concession from federal officials looks from the outside something like a scramble to draft, release and adopt rules. It also underscores the fretful hope among policymakers that accountable care will work not just for large, wealthy and well-organized health systems, but for small medical groups and rural hospitals.
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