This is the second of a series of scenarios designed to demonstrate the impact of the Affordable Care Act aka Obamacare on the private marketplace. For more information or to hear my commentary tune into America’s Healthcare Challenge. Latest podcast here.
General Hospital is the only hospital in a mid-sized city. It has 300 beds and employs 1000 medical staff and 300 support staff. It recently completed a large addition to the main hospital, with state of the art patient rooms and a reconfigured and remodeled cafeteria as well as a new medical laboratory in the main building. They are investing in the future of healthcare.
General Hospital serves a primarily rural part of the state.
The hospital funded recent improvements by selling bonds, but failed to secure enough capital to complete the projects. Parts of the hospital remain closed and there is a hiring freeze. Administrators hesitate to move forward until the full impact of the Affordable Care Act implementation is known. The General Hospital Board is grappling with the changing Medicare and Medicaid reimbursements and how it affects their profit margin. Meanwhile, the cost of labor and materials continues to rise and staff wonders if the construction will ever be completed.