Hospitals in Tennessee and Alabama are struggling to deal with the effects of the financial crisis and recession, according to surveys in those states. Most hospitals responding to a Tennessee Hospital Association survey of 88 hospitals have reduced their workforces, and many are even cutting services in response to a recession that appears to be hitting healthcare providers harder than past downturns. As of Dec. 10, 52% of the hospitals in Tennessee have reduced their workforces, and 39% are still considering it. Meanwhile, 33% of the hospitals made cuts in services. In the 30 years Ive been in this business, Ive never seen anything like this, said Craig Becker, president of the Tennessee association. Meanwhile, in Alabama, instability in the credit market has led to an increase in the interest expense for variable-rate debt among 70% of respondents to a survey by the Alabama Hospital Association. More than half of the chief executive officers from 84 facilities said that the credit crunch has moderately or significantly affected daily business. The majority, 86%, said that they are reconsidering or postponing capital expenditures for new services and renovations.
Tenn., Ala. hospitals struggling to deal with economy: surveys
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