An audit conducted of Doctors Medical Center in Modesto, Calif., shows the hospital's financial woes have not lifted since 2009 when it posted operating losses of $13.2 million, according to a San Jose Mercury News report.
Despite implemented efforts to contain costs, the hospital posted an even greater operating loss of $15.5 million at the end of 2010. The audit report also showed the hospital had just 16 days of unrestricted cash on hand in 2010, compared to 26 days in 2009.
Chairman of the hospital's board, John Gioia, and other unnamed leaders are in discussions with other healthcare facilities including Kaiser Permanente and John Muir Health to see if those institutions would be able to help the hospital as they did in 2006 when DMC declared bankruptcy. The hospital board noted it may again have to file for bankruptcy but was quick to justify the move would allow the hospital to restructure its finances while still providing care, according to the news report.
Read the news report about Doctors Medical Center's finances.
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Despite implemented efforts to contain costs, the hospital posted an even greater operating loss of $15.5 million at the end of 2010. The audit report also showed the hospital had just 16 days of unrestricted cash on hand in 2010, compared to 26 days in 2009.
Chairman of the hospital's board, John Gioia, and other unnamed leaders are in discussions with other healthcare facilities including Kaiser Permanente and John Muir Health to see if those institutions would be able to help the hospital as they did in 2006 when DMC declared bankruptcy. The hospital board noted it may again have to file for bankruptcy but was quick to justify the move would allow the hospital to restructure its finances while still providing care, according to the news report.
Read the news report about Doctors Medical Center's finances.
Related Articles on Hospital Finances:
MedPAC Issues June Report to Congress; Includes Suggestions to Improve Use of Imaging
MACPAC Issues First June Report to Congress
Colorado's Vail Valley Medical Center Cuts Execs' Salaries, Lays Off 22 Employees