What forces at work in healthcare are leading to changes at the University of Chicago Medical Center?
There are two central, overlapping problems, the slow decay of the U.S. healthcare “system” and the rapid decline of the global economy. These come together in the hospital setting. Our healthcare system is broken. The poor often lack access to basic healthcare, the field is fragmented and difficult to navigate, and costs continue to increase. At the same time, the economy is in what appears to be a profound and lasting recession. Healthcare was once thought to be immune from such fluctuations. This is no longer true. A November survey found that the median profit margin of U.S. hospitals fell to zero percent in the third quarter of 2008; approximately 50 percent of hospitals were unprofitable. One measure of fiscal stability, hospitals’ cash-on-hand, reached an historic low in the third quarter of 2008, with a median value of 110 days. Despite a recent history of strong financial performance, this directly affects UCMC. Patient volume and clinical revenue have declined, more patients
