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Hospitals ill from more bad debt, credit troubles
Most people wouldn't think that the health care industry would suffer from the current economic recession enveloping the country. After all, health care is a necessity, whether the country is swimming in riches or drowning in debt. However, hospitals around the country are finding out that recession can wound even the most fastidious of health care providers.
Hospitals across the nation, such as Shands AGH in Gainesville, New Jersey, are merging together, morphing from non-profit to profit and, if experiencing severe enough problems, closing the doors for good. All over, hospitals are cutting costs by avoiding renovations, cutting staff hours and positions, and outsourcing services like housekeeping and security, making staff shortages even more prominent.
According to a health news article on Yahoo!, hospitals employ five million people in America. They are currently "reporting that donations and investment returns are down, patient visits are flat and profitable diagnostic procedures and elective surgeries are declining as people with inadequate insurance delay care." Coupled with "stingy reimbursements from commercial insurers and high labor and technology costs," it's of little wonder why hospitals are beginning to feel the credit crunch.
What the Yahoo! article fails to mention is a remedy or preventative measure that hospitals can take to help curb unnecessary costs. Using an independent review organization, like AllMed, can help hospitals and payers alike make the best, most time and cost efficient decisions for patients and doctors. Although independent review organizations require fees, the money and time saved, coupled with the confidence of that always-correct decisions that AllMed makes, is worth the extra cost of outsourcing to an independent review organization like AllMed.
To read the full article on Yahoo!, click here


