In “Hospital profits: Unhealthy turn; Sour economy impacts providers”, it is reported that (1) Lancaster General Hospital’s “margin was 9.3 percent. Industry experts say hospitals should have a 4 percent to a 6y percent margin to remain financially viable.”
It also reports (2) “Lancaster General Health’s pension plan was affected by the downturn in the stock market, which meant the organization had to ad ‘tens of millions’ of dollars to it…”
WATCHDOG: (1) Only market dominance can result in such an extraordinary margin of profitability!
(2) Well now, does that mean that apart for the temporary downturn in stock value, its profits would have been around $90 million to $100 million dollars, not far off than the $108 million they earned in 2007/2008 according to the article?
We await publication of the 2008 / 2009 LGH financial report to the federal government, due by May 15. We would like to see how much of LGH’s vast profits was devoted to meeting local needs. When times are tough, it is especially incumbent upon those with the means to give until it hurts. What is the use of being rich if you turn your back when the needs are greatest!
