California Hospitals Warn of Impact on Patient Care Due to Energy Rate Hikes; Two-Thirds of Hospitals Losing Money, Rate Hikes Will Push More Closer to Financial Edge.Business Editors/Health & Medical Writers SACRAMENTO, Calif.--(BW HealthWire)--May 15, 2001 The following is a statement by C. Duane Dauner, President, California Healthcare Association: California's hospitals are deeply troubled by the increase in electricity rates that the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, (CPUC CPUC California Public Utilities Commission CPUC Current Procurement Unit Cost ) has approved today. The CPUC's decision to increase the rates that hospitals pay for electricity comes at a time when two-thirds of the hospitals in California List of hospitals in California (U.S. state), grouped by county and sorted by hospital name. Alameda County
Doing business while losing money. . California's health care system is nearing a financial meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb . The cost of uncompensated care uncompensated care, n health care services provided by a hospital, physician, dental professional, or other health care professional for which no charge is made and for which no payment is expected. rose to $2.89 billion in California last year, a staggering 61.1 percent increase from just two years ago. The most severe nursing shortage in the nation has put California on the brink of a public health crisis -- with RN vacancy rates in hospitals averaging 20 percent statewide. California's Medi-Cal program ranks 48th out of 50 in terms of the state's reimbursement to hospitals for patient care provided to low-income people. And, California's hospitals are facing a $24 billion unfunded state mandate to meet new seismic standards. Now, under the CPUC decision, some hospitals will face a doubling of electricity costs. California's hospitals acknowledge that all ratepayers -- including hospitals -- are going to have to pay more for electricity in order to resolve our current energy crisis. And, we appreciate the CPUC's recent decisions that exempt hospitals from any future black-outs, and eliminate proposed tiered rates and on-peak rate structures for commercial users. Our concern remains the degree to which hospitals will be hit with higher electricity costs. A newly released study by the state Attorney General's Office on hospital closures in California unequivocally states that of the 23 hospitals that closed between 1995-2000, financial hardship was evident in all cases. The report states "...nearly all of the state's general acute care hospitals showed signs of financial distress Financial distress Events preceding and including bankruptcy, such as violation of loan contracts. , but those that closed were performing worse even than the average." With the precarious financial condition that California's hospitals already find themselves in, a potential two-fold increase in the amount they spend on electricity will push more hospitals closer to the financial edge. |
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