The Truth: Our Economic Health Care Crisis

The Truth: Our Economic Health Care Crisis

Since December 2007, the United States has been in an economic recession. Due to this economic recession, Medicaid which is the single largest state budgeted item has become increasingly vulnerable. With the availability of state funding dwindling, Medicaid reimbursement to hospitals is also being cut at an exceedingly large rate. A report in November 2008 states that 38 percent of hospitals already have experienced a decrease in philanthropic giving, (Trendwatch 3). Hospitals rely on these donations and this greatly affects their ability to use those assets towards new developments. Due to this, hospitals are no longer receiving reimbursement from the state for their services which has in turn reduced their ability to receive other state funding to keep jobs. Due to this decrease in availability, hospitals must reevaluate their approach to finding other sources for their funding and reimbursement for Medicare and Medicaid and the uninsured patients.

Currently, hospitals around the US have suffered greatly due to our economic status. Hospitals around the US have postponed new developments, building projects, and upgrading equipment. “For example, the Lakeview Hospital in Stillwater, Minnesota, they have postponed breaking ground on a 60,000-square-foot facility that would expand its emergency department and surgical offerings due in part to current economic conditions”, (Trendwatch 3). Hospitals in civilian sectors aren’t the only ones who are experiencing distress. The United States Military is also experiencing difficulties in upgrading equipment in hospitals and hiring new employees to maintain these hospitals and clinics, and keeping bases functioning. “BRAC also known as Base Realignment and Closures has been seen all over the Military, not just in the medical field. In Kansas, 18 armories have been threatened with closing its doors, which will save nearly $157,000 in the 2009 Fiscal Year which ends June 30, and...