News Column

United States : VALLEY MEDICAL CENTER cuts costs and reduces retirement benefits

June 2, 2014

A senior hospital executive has announced that Valley Medical Center is "living within its means,", by cutting costs and reducing retirement benefits.

Valley Medical, like other public hospitals, needs to absorb multi-million dollars in uncompensated or charity care for patients who are not insured. Some cost for health-care reform is borne by the hospital and the Great Recession reduced multi-million dollars from its property-tax revenue. said last December, that it had cut expenses by about $3.8 million in the earlier six months or so to offset those costs, including $1.3 million in savings from decreased contributions to staff retirement plans.

Valley Medical views $3.8 million as operating income, not profit, and an indication of the non-profit hospital's financial health.

Senior vice president for human resources and marketing, Karyn Beckley, said : "We have some cash in the bank. We had a positive bottom line, so we are controlling expenses. We are living within our means."

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Source: TendersInfo (India)

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