Conn. Hospitals Still Bleeding

Red Ink

 BRIDGEPORT (AP) — The organization representing Connecticut hospitals says its members are losing hundreds of millions of dollars.

The Connecticut Hospital Association says that in the first three months of this year, hospitals lost more than $200 million.

The red ink for the first quarter comes after a $156 million loss in the last quarter of 2008.

CHA spokeswoman Leslie Gianelli says the situation is unusually dire because the economic downturn has hit hospital investments hard.

She says that in the past, investment income, real estate holdings or other contributions would make for low operating margins or revenue from patient care.

Gianelli says those nonoperating margins often “fill the gap” for shortfalls in Medicaid rates, which reimburse about 70 cents on the dollar for each procedure.

The CHA represents 28 nonprofit hospitals and many health-related organizations.