The growing spate of hospital closures and bankruptcy filings have caused healthcare officials in the New York area to re-examine the system to try and right the ship.
“Hospitals lost $300 million in New York last year, but health care plans made $1.5 billion in profits,” said Kenneth Raske, the president of the Greater New York Hospital Association (GNYHA), an organization representing over 200 hospitals in the New York area. “A sales person for orthopedic devices makes more money than an orthopedic surgeon in most cases. We need to achieve market equilibrium.”
In Queens alone, health care institutions are the largest source of employment, providing 66,000 jobs. The borough is the home to 13 hospitals, one of which is in the process of closing — St. Joseph’s Hospital in Flushing, and another who has filed for bankruptcy protection — the New Parkway Hospital in Forest Hills.
“There is much at stake,” said David Golub of the American Cancer Society at a recent health care forum hosted by the Queens Chamber of Commerce. “Health care is an economic driver.”
Hospitals and medical centers are under a lot of pressure to generate revenue even though they are faced with rising costs in health care and lack of health insurance. According to a statement released by Saint Vincent’s Medical Centers, nearly 25% of all New Yorkers have no health insurance, not to mention those who are underinsured or covered by HMO plans.
Hospitals are turning to bankruptcy laws to allow them time to reestablish their finances and essentially regroup their financial systems. “Hospitals in the New York area are unfortunately being forced to turn to the courts for help to ensure that quality access to health care is preserved,” added Mary Johnson, spokesperson for GNYHA.
Steven Berger, the chair of the the governor’s recent task force on Health Care Reform told the audience at the forum that changes needed to occur in spending, rate structures and operating margins for hospitals to return to solvency.
“Its going to take a decade or more to make the changes we have to make,” added Berger.
melissa@queenscourier.com