Hospitals all across America are struggling to find ways to reduce costs and eliminate duplication of efforts. These cost cutting measures are part of the hospitals preparation to survive once health care reform fully begins in 2014.

In California, hospitals are trying to figure out how to make due with fewer patients, because the amount hospitals will be paid for providing medical services will be based upon keeping patients from returning to the hospital. This is a whole new world for hospital administrators, and on top of that they face significant cuts to Medicare and Medicaid, which make up over 50% of California hospital revenues.

Let’s hope the hospitals figure this all out, because it would be a shame to only have a couple of hospitals left a few years after health care reform starts. That would cause the ultimate access to health care restriction horror scenario.

Stay tuned for more.

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