Published on: Wednesday, April 08, 2009

By Dr. Bernard Kapiloff, Publisher

In the midst of all the confusion on bailouts, another industry is asking to join the club. Call it chutzbah. The hospitals are in the mood to request additional help.

The majority of hospitals in this state, except a few proprietary ones, enjoy tax exemption under 501c, along with all of its other benefits. They have their own boards not elected by their communities and are independent.

They are in a major industry and to the public's benefit provide thousands of jobs in their communities. But in return, they are granted privileges and help in financing through state funding, e.g. health and higher education bonds. This has resulted in overbuilding in some areas, which increases the hospitals debt service, which in turn results in higher rates.

The present economic crisis has resulted in a drop in elective surgery and medical admissions reducing hospital income. The resulting shortage has also affected care.

A number of obvious recommendations should reduce hospital costs but are ignored. Since the 501c status should help the public, why don't hospitals cooperate instead of competing with each other?

The thought of group purchasing as well as the cost of the competition of advertising their wares could certainly reduce costs. The increased budgets have also resulted from the hiring of so many full-time physicians.

With the shortage of nurses, they compete for personnel by offering bonuses to change employment. Waste disposal, a major item, could benefit from group contracts. Likewise, pharmacy purchases, food, etc., could all contribute to reduce costs. Salaries for administration – more transparency! The list goes on.

Hospitals are obligated to render care and this increases the use of emergency rooms. What has happened to the free clinics that physicians (staff members with attending privileges) were required to serve to maintain their privileges? This would relieve the pressure on emergency rooms and reduce the cost of care.

Utilization of nurse practioners and the "Wellmobile" would reduce our costs and should be expanded.

A re-evaluation of our system is in order. This is not a rocket science suggestion but common sense.

Public comment is welcomed.