Michigan hospitals brace for next hit

State Medicaid cuts, GM bankruptcy to add to woes

BY PATRICIA ANSTETT • FREE PRESS MEDICAL WRITER • June 12, 2009

The bankruptcy of General Motors Corp. and new state Medicaid cuts are expected to hit Michigan hospitals hard, on the heels of record losses from soaring patient debts and free care for the uninsured.

Around the state, hospitals are digging into budgets to find additional savings, in anticipation of the next hit. They are postponing new projects and freezing job openings, mostly outside of patient care.

Job seekers will notice fewer openings, as health systems, once a reliable source of employment and good benefits, cut their workforce. Patients may see longer waits, particularly in areas like imaging or surgery, hit by drops in business as people without insurance or higher co-pays postpone care. [Continue]

Tough economic times? Cutting IT budget is not the way to go

The natural instinct during a weak economy is to pull back the reigns and freeze spending. IT infrastructure is growing in importance, taking a leading role in admissions, record keeping, diagnostics and communication.

Tom Adams of HP Financial Services writes in HealthcareIT News, "Facing the most uncertain economic climate in decades, frugality has become the predominant instinct among healthcare organizations. However, when it comes to technology - and IT infrastructure in particular - the impulse towards frugality must be combined with the intelligent implementation of industry."
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