Financial distress threatens the viability of about one-third of New York City's 35 hospitals, typically facilities serving a large population of low-income patients and having fewer than 300 occupied beds, according to a new United Hospital Fund report. All of the hospitals identified as in financial jeopardy or at risk in 1999, when the not-for-profit organization last published such an analysis, were so again in 2001. New York hospitals posted an aggregate operating margin of -0.4% in 2001 on $15.5 billion in revenue. Revenue and expenses both grew by 7.3% from 1999 to 2001. Thirteen hospitals were identified as "in jeopardy," typically having large and recurring operating losses and working capital and net asset deficits. An additional seven hospitals were identified as "at risk" -- able to meet their financial commitments but vulnerable to changes such as reduced reimbursement and increased numbers of uninsured. In-jeopardy and at-risk hospitals accounted for 57% of hospitals in the city. Read the report. -- by Cinda Becker
Viability of many N.Y.C. hospitals in doubt: report
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