Cleveland-based MetroHealth System is on pace to lose $1.1 million this year as of July, but initial projections showed an expected $40 million profit, according to a Plain Dealer report.
In an effort to stay in the black for the year, the hospital established a hiring freeze and made cuts in discretionary spending not related to patient care, such as travel and consulting, the report said.
In 2009, the health system recorded a $58.5 million net income, and in 2010, the net income was $27.1 million. However, the health system's inpatient revenues currently are $473.4 million, about $14.4 million less than expected. Salaries, medical supplies and charity care are also all higher than the budget originally projected.
MetroHealth has faced scrutiny as of late after it was discovered it paid large consulting contracts to individuals and companies that currently work within the system and to those who are no longer employed with the system.
Newspaper Editorial Calls Out Cleveland's MetroHealth for Weak Public Relations
Jeff Rooney Hired as Interim CFO of Ohio's MetroHealth
In an effort to stay in the black for the year, the hospital established a hiring freeze and made cuts in discretionary spending not related to patient care, such as travel and consulting, the report said.
In 2009, the health system recorded a $58.5 million net income, and in 2010, the net income was $27.1 million. However, the health system's inpatient revenues currently are $473.4 million, about $14.4 million less than expected. Salaries, medical supplies and charity care are also all higher than the budget originally projected.
MetroHealth has faced scrutiny as of late after it was discovered it paid large consulting contracts to individuals and companies that currently work within the system and to those who are no longer employed with the system.
Related Articles on MetroHealth:
Cleveland's MetroHealth System's Executive Pay, Bonuses Cause ConcernNewspaper Editorial Calls Out Cleveland's MetroHealth for Weak Public Relations
Jeff Rooney Hired as Interim CFO of Ohio's MetroHealth