Lifespan Faces Serious Financial Challenges

Lifespan Faces Serious Financial Challenges

Lifespan announced it is facing serious financial shortfall. In 2011, the hospital groups total revenue exceeded $1.68 billion dollars.

The Lifespan hospital group manages Rhode Island Hospital, The Miriam Hospital and whose partners also include Rhode Island Hospital's pediatric division, Hasbro Chidren's Hospital, Bradley Hospital and Newport Hospital.

In a statement from Lifespan to GoLocalProv, the healthcare organization said, "During the first five months of the fiscal year, which began October 1, 2012, Lifespan's operating performance was significantly below budget. The financial shortfalls are attributed to a prolonged economic slump in Rhode Island, as well as a number of key factors - downward pressure on our reimbursement rates, a sharp increase in charity care and an increased length of stay for hospitalized patients."

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As of the end of 2012, Lifespan employed 12,000 and is one of the biggest workforces in Rhode Island. Rhode Island Hospital was ranked 170th of the 176 hospitals ranked in New England by patients.

Lifespan further stated they are exploring how they will make cost reductions to meet the financial shortfalls, "In response, Lifespan is asking management, physician partners and frontline staff to review current budgets and recommend expense reductions that will address the current financial shortfall. It is premature to discuss what cuts will be implemented; however, we will take steps to ensure that they do not compromise patient quality or safety, and we will work hard to minimize the impact on our employees."