MHA Press Room

Hospitals healthy for the economy

Hospitals employ more than 5 million people and rank second as a source of private-sector jobs, according to a report released April 7 at the American Hospital Association’s annual meeting in Washington, D.C. Hospitals and their employees also purchase goods and services from other businesses, supporting nearly $1.9 trillion in economic activity.

In addition to economic benefits, hospitals offer an array of community services and provide free or reduced-cost health care services for patients with limited financial means. “Hospitals provide so much for a community,” said AHA President and CEO Rich Umbdenstock. “In addition to caring for the sick, hospitals provide jobs, good wages and benefits in the communities they serve.”

The report includes a state-by-state analysis of the economic contributions of hospitals to their communities.

Health care a key driver of U.S. economy and jobs

BusinessWeek reports in the magazine’s Sept. 25 cover story, “Health care has added 1.7 million jobs since 2001. The rest of the private sector? None.” While the number of private-sector jobs outside health care is no higher than it was five years ago, the magazine reports, hospitals and other employers in the health care field are propping up the economy.

The article cites for example Children’s Hospital of Philadelphia, which nearly doubled its workforce over six years as it added the equivalent of 4,000 new full-time jobs. “To put this in perspective, all the nonhealth-care businesses in the Philadelphia area combined added virtually no jobs over the same stretch,” the story adds. To see the story click "BW Magazine" at www.businessweek.com.

[ via AHA News Now ]

HFMA: Over half of hospitals struggling financially

According to a new Healthcare Financial Management Association (HFMA) study, over half of U.S. hospitals are facing financial struggles. Rural hospitals and those not affiliated with a health system--almost half of hospitals--are particularly at risk from competitors. Financial pitfalls come from many directions, including competition from doctor-owned facilities, lower government reimbursement rates, high debt and spending on necessary infrastructure and IT improvements. Some hospitals will thrive while others fail; this is determined by how much access to capital hospitals have. "Organizations that are relatively nimble and can seize emerging opportunities will continue to have fairly broad access to capital. Organizations at the other end of the spectrum are going to struggle. And organizations in the middle, with moderate capital access, will need to identify their areas of distinctive competence and focus their capital spending on these areas," notes Richard L. Clarke, president and CEO of HFMA. Seizing opportunities to cut programs that aren't working and offering better services are necessary for a hospital's survival.

For more on the HFMA study, read their press release.

[ via FierceHealthcare ]