Midlands hospitals take a scalpel to their spending

Article Date: Sep 23, 2013

The 11 facilities in the Omaha area look to cut 10 to 15 percent from their budgets as Obamacare rolls out.

It could be as simple as everybody ordering the same kind of plastic cup or artificial hip implant. It could be as complex as eliminating a department or merging with a chain of hospitals.

Whatever saves — or makes — a hospital money.

Methodist Health System, Nebraska Medical Center and Alegent Creighton Health officials say they are on the hunt for savings, efficiencies, income sources and cuts for their 11 hospitals in the Omaha area. The goal is to reduce budgets by 10 to 15 percent. In the case of the Nebraska Medical Center, 10 percent would be about $100 million.

Short term, the Affordable Care Act, also known as Obamacare, constrains the growth of Medicare payments and cuts what the federal government gives hospitals that serve a dispro­portionate share of poor patients. Automatic spending cuts tied to the sequestration process reduce Medicare payments to hospitals by 2 percent.

Richard Hachten, Alegent Creighton Health president and chief executive officer, is quoted in this story discussing financial challenges developing for the next fiscal year.

Read the full article on Omaha.com.


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