Jeff Dreger wrote:Regardless of how the numbers have been manipulated or the data massaged, the employees I know have indicated that they have been told that Lakewood is losing money - quite a bit of money for quite some time - and that it's never at or even close to capacity.
Six Months Ended June 30 2013 2012
Unrestricted revenues
Net patient service revenue $ 68,350 $ 71,987
Provision for uncollectible accounts (6,546) (7,298)
Net patient service revenue less provision for uncollectible accounts 61,804 64,689
Other 3,383 2,573
Total unrestricted revenues 65,187 (for six months)
Here are the previous years financials:
The hospital made money last year on operations even after the Clinic transferred profit centers to Avon and Fairview and Lutheran.
The new hospital in Avon is not needed. It will only be able to survive because the Clinic is transferring Lakewood Hospitals profit centers to Avon.
The Community Assessment Report is required by law but there is no law that says the Clinic has to read it or take it seriously. I think the authors of the report just went through the motions. I doubt if anyone at the Clinic even read the report.
One aspect of this issue is particularly galling.
The Plain Dealer and our Community institutions and our political leadership spends a lot of time
bemoaning the flight of people and jobs from Cuyahoga County
complaining about urban sprawl
and
bragging about the importance of the medical industry to Cuyahoga County
BUT
they are completely silent about plans to close Lakewood Hospital and transfer 1,400 jobs to Lorain County
WHICH
will encourage even more people to leave Cuyahoga County.
I GUESS
it is what it is but could they at least have the common decency to quite bellyaching about urban sprawl and the decline of Cuyahoga County?
Two years ago Lakewood Hospital had $150 million in annual revenue. That kind of revenue indicates a demand for its services. A demand that will be met by the new hospital in Avon.
The Cleveland Clinic intended to close down the hospital from the moment it signed the lease. Would the Clinic close down a hospital that generates $150 million in revenue? Of course.
When J.D. Rockefeller bought a competitors refinery he closed it down no matter how much money the refinery made. He knew its customers had no where else to go.