Temple University Health System, which reported unexpectedly high operating losses between July and December 2008, said it will convert 187-bed Northeastern Hospital, Philadelphia, into an ambulatory-care center by the end of June. Fewer patients, operating losses and a backlog of capital demands prompted the decision, said spokeswoman Rebecca Harmon in an e-mail. It is simply not sustainable in its current configuration, she said.
Losses at Northeastern are expected to reach $15 million in the fiscal year ending June 30, she said. The projected shortfall is significantly larger than the hospitals 2008 loss of $7.7 million on revenue of $111.6 million in the year ended June 30, 2008, audited financial records show. Investment gains offset the loss by roughly $1.1 million, leaving the hospital $6.6 million in the red, a dramatic swing from the prior years operating gain $6 million on revenue of $113.2 million for the year ended June 30, 2007.
Its unclear how many of Northeasterns 849 full- and part-time employees will be affected by the move to close its emergency and inpatient operations, Harmon said.