Pennsylvania hospital funding shortfalls lead to closures in Philly

Pennsylvania Hospital Funding Shortfalls Lead to Closures in Philadelphia

A January 21 report from The Hospital and Healthsystem Association of Pennsylvania (HAP) has highlighted the dire consequences of inadequate hospital funding in the state, with Philadelphia and other regions facing significant challenges. The report, conducted by consulting firm Oliver Wyman, warns that up to 14 hospitals across Pennsylvania could close within the next five years without urgent reforms to align hospital payments with the actual costs of care. This comes on the heels of 25 hospital closures statewide over the past decade.

The report reveals that fewer than half of Pennsylvania’s hospitals are operating with sustainable margins, with 37% running at a loss. Medicaid reimbursement rates in the state are 11 percentage points below the national average, covering only 71 cents for every dollar spent on care. HAP President Nicole Stallings emphasized the urgency of the situation, stating, “We cannot have healthy, vibrant, and competitive communities in Pennsylvania without strong, financially stable hospitals.” The report also projects that without intervention, closures could add an average of 22 minutes to Pennsylvanians’ drive times to the nearest hospital and result in $900 million in lost wages due to job losses. HAP is advocating for increased state budget investments to stabilize hospital operations and safeguard access to care.

Pennsylvania Hospital Funding Shortfalls Lead to Closures in Philadelphia was originally published on rnbphilly.com