Cincinnati Children’s Hospital Medical Center, and similar institutions nationwide, are facing an economic environment where nothing is sacred – not even funding for pediatric hospitals.
With much of their revenue coming from state and federal sources, children’s hospitals serve as a case study of governments’ ineffectiveness at controlling medical costs, according to a recent report by the nonprofit Kaiser Health News. Frequently enjoying nonprofit status and limited local competition, the business is in the midst of a multibillion-dollar building boom nationwide, with many hospitals, including Cincinnati Children’s, earning millions in profits.
What to Cut?
In Florida, California, and elsewhere across the country, it’s the same story, according to Kaiser.
Hospitals such as Cincinnati Children’s “may have to take a close look at productivity, cut materials costs, cut programs, reduce the hours for non-emergent services and reorganize to become more efficient,” said Lucas Higman, Vice President at St. Petersburg, Fla.-based Soyring, a hospital management consulting firm. Cincinnati Children’ officials said in January they had shelved plans they once had for a new clinical building on their main campus largely because they found a more efficient way to schedule surgical procedures.
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