Mt. Sinai Hospital Case
Patrick Fitzgibbons
MBA 528
Case #2
11/17/2014
Mt. Sinai hospital is a Non-Profit hospital located on the West Side of Chicago that has in recent years faced increasing volumes of patients, demographic changes in their client’s, and increasing economic pressure. As a non-profit Mt. Sinai has a responsibility to provide affordable and quality care to individuals in the community despite their economic situation. This means relying increasingly on Medicaid as well as providing care to individuals that may not qualify for federal assistance through Medicare or Medicaid. During the past 20 years, the number of for-profit health care facilities, ranging from national hospital chains affiliated with major academic institutions to local dialysis …show more content…
Sinai resides and provides care. A new report from Fitch Ratings predicts nonprofit hospitals in states that have chosen not to expand Medicaid will experience increasing financial challenges in 2014, and in years to come, while hospitals in states that have expanded Medicaid have already begun to realize the benefits of increased insurance coverage (Ratings, 2014). Due to continued reimbursement cuts to Medicare payments and an expected federal Medicaid funding reduction, Fitch expects hospitals in states that have expanded Medicaid to continue to benefit from the increase in coverage, while hospitals in non-expanded states will continue to feel the burden (Ratings, 2014). This will greatly affect Mt. Sinai and other non-profit hospitals in similar situations. A recent article in the Miami Herald illustrates this in a recent article about Florida hospitals and the potential of losing billions of dollars if the state decides not to expand Medicaid. Nonprofit hospitals stand to lose the most as they serve the most economically needy population. Illinois did expand Medicaid but it is still grossly underfunded and despite the legislative action will face issues as the federal government begins to wind down their funding of the state’s expansion. A state with many fiscal woes, as Illinois is, must find a way to fund the Medicaid expansion or hospitals like Mt. Sinai will face continuing financial pressures and bills that go unpaid. Patients rely on these programs but the state’s fiscal issues will ultimately decide whether these nonprofit hospitals serving rural and low-income communities continue to
MBA 528
Case #2
11/17/2014
Mt. Sinai hospital is a Non-Profit hospital located on the West Side of Chicago that has in recent years faced increasing volumes of patients, demographic changes in their client’s, and increasing economic pressure. As a non-profit Mt. Sinai has a responsibility to provide affordable and quality care to individuals in the community despite their economic situation. This means relying increasingly on Medicaid as well as providing care to individuals that may not qualify for federal assistance through Medicare or Medicaid. During the past 20 years, the number of for-profit health care facilities, ranging from national hospital chains affiliated with major academic institutions to local dialysis …show more content…
Sinai resides and provides care. A new report from Fitch Ratings predicts nonprofit hospitals in states that have chosen not to expand Medicaid will experience increasing financial challenges in 2014, and in years to come, while hospitals in states that have expanded Medicaid have already begun to realize the benefits of increased insurance coverage (Ratings, 2014). Due to continued reimbursement cuts to Medicare payments and an expected federal Medicaid funding reduction, Fitch expects hospitals in states that have expanded Medicaid to continue to benefit from the increase in coverage, while hospitals in non-expanded states will continue to feel the burden (Ratings, 2014). This will greatly affect Mt. Sinai and other non-profit hospitals in similar situations. A recent article in the Miami Herald illustrates this in a recent article about Florida hospitals and the potential of losing billions of dollars if the state decides not to expand Medicaid. Nonprofit hospitals stand to lose the most as they serve the most economically needy population. Illinois did expand Medicaid but it is still grossly underfunded and despite the legislative action will face issues as the federal government begins to wind down their funding of the state’s expansion. A state with many fiscal woes, as Illinois is, must find a way to fund the Medicaid expansion or hospitals like Mt. Sinai will face continuing financial pressures and bills that go unpaid. Patients rely on these programs but the state’s fiscal issues will ultimately decide whether these nonprofit hospitals serving rural and low-income communities continue to