News Headlines Article

Two Readings on a Hospital’s Health
The Wall Street Journal

When Mountain View’s El Camino Hospital last month announced plans to lay off about 140 workers due largely to a rise in nonpaying clients, the medical provider highlighted a debate over the financial health of the Bay Area’s nonprofit hospitals.

On one side are hospital leaders and industry groups who say the weak economy, declining patient-reimbursement rates and uncertainty posed by the federal health-care overhaul put nonprofit care providers in peril. On the other side are labor groups like the Service Employees International Union, who say the economic environment for hospitals is improving and that care providers are using the recession as an excuse to threaten job cuts and gain negotiating leverage over the unions.