Hospital owners have approached the city to express interest in taking over UMC, Steve Badger, CEO of G.W. Medical Faculty Associates physicians group, told the Journal. D.C. Mayor Vincent Gray wants to return the financially struggling hospital to the private sector through an acquisition or incentive-based management contract, according to the report.
UMC began its search for a partnership with a private sector hospital chain earlier this year. The District and Chicago-based Huron Consulting Group — which took over the hospital's operations earlier this year on a two-year, $12.7 million contract to prepare UMC for a potential buyer — said in August that they were "cautiously optimistic" about the potential for an affiliation.
UMC has struggled financially for several years and reported $13.8 million in losses for fiscal year 2012, largely due to Medicaid overpayments. In February 2012, the hospital requested $15 million from local taxpayers to shore up its finances. In 2010, the district had to take over UMC because Specialty Hospitals of
Despite considerable district intervention, UMC has seen few lasting changes in its management or operational structure. As of March 2013, the 350-bed hospital had received about $100 million from the district since 2007. However, even with recent increases in patient volume, most of the hospital's patients have government insurance or no insurance. Combined with changes to the disproportionate shares funding formula, UMC CFO Michael Davis reported in March the hospital had only four days of cash on hand.
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